SMT Divergence For beginners. This is a foundational thread which explains all you need to know.
- I'll DM you the PDF, read until the end.
A Thread🧵
What is SMT?
SMT shows up when two assets that usually move together start acting differently.
Look for a “failure swing” — when one tries to move but can’t.
Markets turn in two ways: liquidity grabbing (breaker) or failing to grab them (failure).
Where to Look and Confirm SMT?
When you mix ERL/IRL with SMT, you get a strong way to spot reversals at key levels.
SMT is confirmed with a CISD. It's not valid until a valid CISD/OFF forms at the key level.
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[🧵 Thread]
What is an Daily Bias?
Daily bias is the expected direction (bullish or bearish) of the market for the day based on key levels and market structure.
Bullish Bias:
To find the daily bias, start by marking the high and low of the previous day's candle. These levels help you see where price might go next - whether it's likely to move up, down, or stay.