TJR SMT Divergences

TJR – SMT Divergences

Smart Money Technique (SMT) Divergences is a tool designed to compare two instruments and detect situations where their pivot structures (swing highs / swing lows) diverge.

How it works
The script identifies pivots on the active chart and on two selected comparison instruments. When one market creates a Higher High (HH) or Lower Low (LL) and the other fails to confirm it (remains at an Equal High/Low or forms an LH/HL), an SMT Divergence is detected. Lines connect consecutive pivots, and labels indicate which instrument generated the divergence.

Settings
Pivot Lookback – number of bars left/right required to confirm a pivot.
Comparison Symbol A/B – choose comparison instruments (default: ES1! and NQ1!).
Style – colors for swing high/low divergences.
Dashboard – optional table summarizing counts and effectiveness of signals.

Use cases
Identify when normally correlated markets start to diverge.
SMT signals are often used as confirmation of liquidity grabs or false breakouts.
Common setups include ES vs NQ, EURUSD vs DXY, or other highly correlated markets.

Tips
Works best on lower timeframes (1m–15m) when comparing correlated instruments.
The dashboard can be enabled to track signal statistics in real time.
Labels are kept small by default to reduce clutter but can be disabled if preferred.