SMT Divergence ICT 02 Indicator for TradingView – Free [TFlab]

The SMT Divergence ICT 02 Indicator is a TradingView tool built on ICT (Inner Circle Trader) and Smart Money Concepts (SMC). Designed to detect Smart Money Divergences (SMT) between two or more correlated symbols, it helps traders anticipate potential reversals or confirm ongoing market trends. By comparing relative strength across markets, this ICT-style liquidity indicator adds a deeper layer of insight to price action analysis.


You can access the Indicator from this link:

https://tradingfinder.com/products/i...rgence-ict-02/

You can access the Indicator on the TradingView website:

https://tradingview.com/script/a8BJG...Technique-SMC/


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SMT Divergence ICT 02 – Overview

By spotting divergences in price structure across correlated instruments, the indicator allows traders to:

1. Detect early market reversals.
2. Confirm existing trend direction.
3. Gain an edge using institutional-style analysis.

It is optimized for multiple timeframes and works across Forex, cryptocurrencies, stocks, and commodities.


Key Features

1. Detects bullish and bearish SMT divergences between correlated instruments.
2. Highlights divergences using colored lines and directional arrows.
3. Customizable for symbols, pivot periods, and analysis depth.
4. Includes alerts and visual markers for quick trade identification.
5. Supports intraday, multi-timeframe, and swing trading strategies.
6. Works alongside fundamental and technical analysis.

Bullish Divergence Example

On a 5-minute BTC/ETH comparison:

1. Bitcoin (BTC) forms a lower low, breaking a support level.
2. Ethereum (ETH) simultaneously forms a higher low.
3. The indicator signals this bullish SMT divergence with an upward arrow.

This setup highlights potential bullish reversals, often preceding institutional liquidity grabs.


Bearish Divergence Example

During a GBP/USD vs EUR/USD analysis:

1. GBP/USD prints a higher high, breaking resistance.
2. EUR/USD simultaneously prints a lower high.
3. The indicator signals this bearish SMT divergence with a red arrow.

Traders can use this to identify early selling opportunities before major downward moves.


Indicator Settings

Logical Settings

1. Symbol: Select the secondary symbol for divergence comparison.
2. Pivot Period: Defines candle range for swing highs/lows.
3. Activate Max Pivot Back: Enables backward pivot scanning.
4. Max Pivot Back Length: Determines how far back to search pivots.
5. Pivot Sync Threshold: Sets divergence tolerance between symbols.
6. Validity Pivot Length: Duration to validate divergence patterns.

Display Settings

1. Show Bullish SMT Line / Label – Toggle display of bullish divergence lines and labels.
2. Show Bearish SMT Line / Label – Toggle display of bearish divergence lines and labels.

Alerts

1. Custom Alert Name – Name your alerts for organization.
2. Message Frequency – Control alert repetition.
3. Time Zone Display – Show alert time in UTC.
4. Bullish/Bearish Divergence Alerts – Enable notifications for divergence signals.
5. Inputs in Status Line – Display active settings in TradingView toolbar.

Conclusion

The SMT Divergence ICT 02 Indicator is a powerful, versatile tool for detecting intermarket divergences using Smart Money concepts. By visually highlighting deviations between correlated symbols, it helps traders uncover hidden accumulation or distribution phases before significant price moves. Compatible with all markets and timeframes, it significantly enhances technical setups when combined with price action and fundamental analysis.