ICT SMT Divergence - How To Use Them
A Thread 🧵

Define Smart Money Technique (SMT) Divergence
- SMT Divergence and HTF PD Arrays: SMT Divergence, an ICT concept, is most effective when combined with HTF PD Arrays rather than used alone. This collaboration can lead to significant profits.
- SMT Divergence is not just a trading strategy, but a tool to assess market strength or weakness.
- Early Positioning Advantage: Traders who monitor SMT Divergences gain an advantage by positioning themselves earlier compared to those who focus solely on one market pair.

- EURUSD and GBPUSD typically move together most of the time due to their direct correlation.
- Ideally, both currency pairs should trigger their High Time Frame Price Distribution Arrays (HTF PD Arrays) simultaneously, but this doesn't always occur.
- In instances where EURUSD activates its HTF PD Array while GBPUSD doesn't, a divergence is created.
- If you're a trader solely focusing on GBPUSD in such situations, your orders may lag behind.
- However, if you understand the (SMT) and observe that EURUSD has activated its HTF PD Array and is showing strength, you can anticipate this movement and initiate long positions on GBPUSD at the indicated optimal moment.

There are 2 categories of SMT Divergences:
🔸Symmetrical Correlation:
- This type of SMT Divergence occurs when 2 pairs that usually move in the same direction start to deviate.
e.g EURUSD & GBPUSD

EURUSD & GBPUSD Chart example

🔸Inverse Correlation:
- This type of SMT Divergence occurs when 2 pairs that usually move in the opposite direction start to deviate.
e.g EURUSD & DXY

Chart Example:

SMT Divergence in Crypto
- Crypto pairs are mostly symmetrically corelated.

BTC & ETH

🔸Common SMT Divergence in Forex:
SMT alo wok in other forex pair
e.g GBPUSD & DXY

🔸SMT Divergence in Indices:
- Indices such as ES, NQ & YM are symmetrically corelated.

NQ & ES Chart Example:

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