SMT Divergence

ICT · Timeframe: H1 / M15 · Sessions: Killzones

Divergence between correlated assets: one makes a new low and the other does not → reversal signal.

How it works

Smart Money Technique: in highly correlated assets (EURUSD/GBPUSD, gold/silver, DXY/EURUSD inversely), if one sweeps a low and the other does NOT confirm it, the weakness is false: 'smart money' is accumulating. It is used as confirmation in liquidity-sweep zones.

Step-by-step rules

1. Compare the asset with its correlated pair (gold↔silver, EURUSD↔GBPUSD).
2. The asset makes a 20-candle low and the correlated asset does not.
3. Entry at the close of the candle that confirms the divergence (bullish close).
4. Stop below the new low.
5. 2R target.

How Marketalyx tests it

Detector (H1): the asset breaks its 20-candle low (high) but the correlated asset does not; the candle closes in the reversal direction; stop at the extreme; 2R target.

See real cases on gold and forex →

Related strategies

Power of Three (PO3 / AMD) · Fair Value Gap (FVG) – retest · Order Block (OB) · PDH/PDL liquidity sweep (Turtle Soup) · ICT Silver Bullet · ICT 2022 model (Sweep + MSS + FVG) · Optimal Trade Entry (OTE 62–79%) · Judas Swing

Educational content. No strategy guarantees profits and past performance does not guarantee future results.