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.