Foolproof Tradingview Strategy: ICT SMT Divergence_Works Every Timeframe

Step-by-Step Tutorial: Foolproof Tradingview Strategy: ICT SMT Divergence

Introduction:

1. In this tutorial, we will be learning about the ICT SMT Divergence trading strategy, a powerful technique for trading correlated pairs.
2. The strategy involves identifying liquidity sweeps and changes in market structure to make profitable trading decisions.

Strategy Overview:

1. Identify two correlated pairs to trade, such as Nasdaq 100 (nas100) and S&P 500 (sandp500), Bitcoin and Ethereum, or EUR/USD and the Dollar Index (DXY).
2. Look for similarities in movements between the pairs – higher highs, higher lows, lower highs, and lower lows.
3. Focus on liquidity sweeps and changes in market structure to determine the direction of the order flow.

Steps to Implement the Strategy:

1. Identifying Liquidity Sweep:

   • Watch for instances where one pair creates a new high or low, while the correlated pair fails to do so.
   • This discrepancy indicates a liquidity sweep and a potential shift in the order flow.
   • Trade the pair that has swept the liquidity.

2. Observing Market Structure Shift:

   • After a liquidity sweep, wait for a change in market structure on a smaller timeframe (e.g., 1 minute).
   • Look for divergences on a timeframe above 15 minutes.
   • Minimum timeframe for entries is 5 minutes.

3. Choosing Entry Points:

   • After a liquidity sweep on a higher timeframe (e.g., 15 minutes, 1 hour), look for entries on a lower timeframe (e.g., 4-hour, 1-hour).
   • Use 15-minute, 30-minute, and 1-hour timeframes to identify divergences.
   • Look for entry points on 5-minute and 1-minute timeframes.

4. Examples:

   • Example 1:

     • In nas100 and sandp500, if nas100 creates a higher high but sandp500 fails to do so, indicating a liquidity sweep, consider a bearish bias.
     • Wait for a market structure shift on a smaller timeframe and enter the trade accordingly.

   • Example 2:

     • If nas100 creates higher highs but sandp500 fails to break the structure, indicating a liquidity sweep, consider a bearish trend.
     • Look for entry points after the liquidity sweep on a smaller timeframe.

5. Conclusion:

   • Implementing the ICT SMT Divergence strategy can help you make profitable trading decisions based on liquidity sweeps and market structure shifts.
   • Practice identifying these patterns in correlated pairs to improve your trading skills and profitability.

Additional Tips:

• Subscribe to channels like fxaccurate for more trading strategies and updates.
• Practice the strategy on a demo account before trading with real money.
• Stay updated with market news and events that may impact your trading decisions.

By following these steps and examples, you can effectively apply the ICT SMT Divergence strategy to enhance your trading skills and potentially increase your profitability.