SMT Divergence (HuntsPip)

SMT Divergence (HuntsPip) detects Smart Money Technique divergences between the current chart and a correlated symbol by comparing their swing highs and swing lows at matching timestamps, marking where one instrument makes a higher high while the other makes a lower high - or vice versa at lows.


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█ CONCEPTS

Smart Money Technique (SMT) divergence is an inter-market analysis concept. It compares the price action of two correlated instruments - such as EURUSD and GBPUSD, or ES and NQ - at their swing points. Under normal conditions, positively correlated instruments tend to make swing highs and swing lows together. When one instrument makes a higher high while the other makes a lower high at the same time, this disagreement is called an SMT divergence.

Some traders interpret these divergences as signs that the apparent strength or weakness shown by one instrument is not being confirmed by its correlated pair. A bearish SMT divergence occurs at swing highs when one chart pushes to a new high but the other fails to do so. A bullish SMT divergence occurs at swing lows when one chart drops to a new low but the other holds above its prior low. The divergence suggests that the move may lack conviction and a reversal could follow.


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█ WHAT IT DOES

This tool detects pivot highs and pivot lows on the current chart using a configurable lookback length, then retrieves the corresponding high and low values from the correlated symbol at the same timestamps. It compares consecutive swing points on both instruments: if the current chart's swing high is higher than the previous one but the correlated symbol's swing high is lower (or vice versa), a bearish SMT divergence is identified. The same logic applies in reverse at swing lows for bullish divergences.

Each divergence is marked with a colored line connecting the two swing points on the current chart and a label identifying whether the signal is bullish or bearish, along with the name of the correlated symbol. Hovering over the label displays a tooltip with the exact price values from both instruments at both swing points.


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█ FEATURES AND USAGE

CONFIGURATION

• Correlation Symbol - The symbol to compare against the current chart. Should be a positively correlated instrument (e.g., GBPUSD when charting EURUSD, or NQ when charting ES).
  
  
• Pivot Length - The number of bars on each side used to identify swing highs and swing lows. Range: 2-50. Higher values detect larger, less frequent swing points; lower values detect smaller, more frequent ones.
  

DIVERGENCE FILTER

• Detection Mode - Controls which direction of disagreement triggers a signal.
    - Both Directions - Shows all divergences regardless of which instrument leads.
    - Current Chart Higher/Lower Only - Only signals when the current chart makes the more extreme move (higher high or lower low) while the correlated symbol fails to confirm.
    - Correlation Chart Higher/Lower Only - Only signals when the correlated symbol makes the more extreme move while the current chart fails to confirm.
  

VISUAL SETTINGS

• Bearish Divergence - Color for bearish SMT signals at swing highs.
  
  
• Bullish Divergence - Color for bullish SMT signals at swing lows.
  
  
• Line Width - Width of the divergence line connecting swing points. Range: 1-5.
  
  
• Line Style - Solid, Dashed, or Dotted.
  
  
• Label Size - Tiny, Small, Normal, or Large.
  

This tool works on any instrument and any timeframe. The correlation symbol should be chosen based on a known positive correlation with the current chart - pairs within the same asset class or sector tend to work best. SMT divergences are inherently lagging since they require confirmed swing points to compare, and are best used as confluence alongside other analysis such as market structure, key levels, or session timing rather than as standalone reversal signals.