SMT Divergences for dummies! (ICT Concepts simplified)
Explained in detail using pictures⬇️
So for the sake of simplicity, we will be sticking to the 15m timeframe as that yields the most consistency
Step 1:
Find two correlated pairs and have the 15m timeframe open, lets use ES and NQ as an example!
Step 2:
Mark out your liquidity lines, so for us we will be using 15m highs/lows
Step 3:
Wait for one pair to take out the liquidity level, for example in this picture NQ takes out the liquidity while ES doesn't
Step 4:
So now that we see that NQ takes out a low while ES doesn't indicates that order flow is bullish. So that means when NQ does a liquidity grab, there's a high chance it will reverse. This is called an SMT Divergence
Step 5:
Look for entry models on NQ's liquidity grab to go long
Live Example: Notice how ES failed to take out a 15m high while NQ did, this indicated that NQ's liq grab had a high chance of playing out
Here's this thread in video format. I also livestream from 9:30am EST Mon-Fri on youtube!
I also have a private discord for people who understand these concepts, but have a hard time applying it for profitability! discord.gg/5Bn8Q29DMh
So before the 9:30 open, we see a liquidity grab on ES confirmed with SMT on NQ. A clean 2022 model is formed, we expect price to trade back into the 15m fvg ideally as a judas swing with the 9:30 open before a move higher.
Note how there is clean equal lows left right above the 15m FVG
How I Got Funded 6 Figures Without HTF Using These 3 Confluences
Explained Using Pics and Video⬇️
First Confluence is Time
We use the 9:30 open and find a judas swing (false move) that either runs liquidity or hits an entry for a previous liquidity run
Here on ES we can see at 9:30 price comes down and takes out SSL. Knowing what I just mentioned, this move is designed to fake our retail traders into shorting the market.