this is a full in-depth breakdown of how to use smt Divergence so you guys can start winning more trades instantly if you guys don't know what smt Divergence is don't worry that's why I am here so let's jump into the charts and let's get into it so first things first I just want to go on here and show you guys what an smt Divergence is going to look like and let's just like [ __ ] describe what an smt Divergence even is so first let's describe what it is so smt Divergence is essentially when we use two indexes for me I prefer to use es and n q and unfortunately Forex crypto guys well crypto sometimes you you can use this with BTC and eth but I wouldn't necessarily recommend it in Forex the only correlation that I have seen this work pretty consistently with is Euro USD and gbpusd so if you want to use that sure go ahead I haven't back tested it as much as I have with these indexes but with that being said let's jump in so we have our two indexes it's es the S&P 500 and NASDAQ okay NQ and what we're going to be looking for is going to be finding the lagging index so SMG Divergence the best way to describe it is let's draw this out here where NASDAQ let's say NASDAQ makes a high and then NASDAQ makes a higher high cool right we're assuming that NASDAQ is continuing in an uptrend but let's say that we're coming into a potential draw on liquidity and if you guys don't know what a draw on liquidity is go watch the boot camp go watch the tradeing transformation I probably made like eight plus videos on that for you guys so go watch those again everybody wants me to refer them back to the boot camp that's one of the best tools so let's say NQ makes a higher high coming into a drawn liquidity or a high sweeping liquidity and then let's say on ES right here we make again a high but we make a lower high okay and again's assume that this little trend is drawn on ES not on NASDAQ I'm just drawing it on here so that you guys get the picture okay so there's a lower high on ES but a higher high on NASDAQ as we're coming through and sweeping liquidity and let's say es moves down even more so okay what is that telling us about NASDAQ because we know these are correlated Pairs and we know these are correlated indexes when es makes a lower high and continues lower as we're coming into this liquidity sweep level we can see and we can know that NASDAQ is a lagging index so NASDAQ is continuing that uptrend that was being made on whatever time frame it may be whether it was the 15 minute whether it was the 5 minute whether it was even the 4 Hour and we're going to go into the chart and show you guys this happens on every single time frame why I've said this so many times because price is fractal all this stuff that I teach happens on every single time frame so whether you're a scalper whether you're a swing Trader you can apply this to whatever you guys want so es makes a lower high and goes down but on NASDAQ we see that it makes a higher high so we can identify see that hey NASDAQ is the lagging index we see that es is now breaking structure it's going lower and it's starting to form a downtrend while NASDAQ is still forming bullish structure but we know that won't last for long because we know that es is already going down off of that liquidity sweep so with that in mind what can we do we can go into NASDAQ and we can start looking for entries we can go down into a smaller time frame we can use our classic entry model that I've made several videos on in the past that you guys can go back to the boot camp training transformation or just any of my other strategy videos and find different entries to be able to execute off of this so we would go into NASDAQ and we would see oh boom there's a break of structure it filled a fair value gap on the lower time frame and it respected it awesome we can enter off of that and why do we want to enter off of NASDAQ because it's the lag lagging Index right es has already made a lower high right here it's already made its move down and it's pretty much telling us the future of what NASDAQ is going to do and let's say es comes down and ends up sweeping out like high time frame liquidity as it's going down to the downside we can safely assume since that happened n if it's still hovering above here I just made a trade recap on using smt Divergence where you guys can look back on literally any any of the trade Recaps that I've done seeing that most of my trade setups are based off of this and this is a super awesome tool so now let's go go in here and let's show the Inver which is a bullish SMG Divergence so that's a bearish and again this isn't like es directly it it can happen on either or so now for this example let's say that NASDAQ makes a low and then makes a higher low and starts continuing higher okay and again let's assume that it's off of this time let's say a high time frame fair value Gap because this doesn't only have to happen off of liquidity sweeps again you guys think of my strategy we need High time frame bias and I just released a video on that so how to find your overall bias within the market find your bias and then find a highly executional price range that you guys can go into and start executing on and that's what we're really looking for here we're looking for an smt Divergence within a highly executional price range okay so here on NASDAQ let's say we come in to a bullish fair value Gap we make a higher low here but on ES let's say we make a low and then boom we make a lower low again within that highly executional price range we can safely assume that es is the lagging index so in turn NASDAQ is already broken structure to the upside it's already moving up we can assume hey since ES made a lower low it's lagging behind NASDAQ and what's likely going to happen it's likely going to go higher so then what do we scale down and look for we look for executions okay we're going to want to see okay maybe we go down into the five minute and we see okay it broke structure we fill the fair value Gap awesome what are we going to do long that [ __ ] same thing NASDAQ comes up and ends up hitting like a liquidity Target okay more than likely same thing is HP going to happen on ES it's probably going to go higher and it's probably going to end up taking out a draw on liquidity okay so that was like my little Picasso painting of it on the chart now let's actually go into the Candlestick chart and show how we can identify this and again if you guys want more examples of this CU I'm only going to show a couple I pretty much use this every single day a lot of people say that they don't even take a trade unless there's an smt Divergence so this is super super helpful okay so let's go in here and let's just literally put on any trading day and let's see this is just like blind reacts uh see if we can find asmt Divergence okay I know we had really high impact news this past week so I'll go ahead here boom Wednesday on what was that uh 10th of July so boom here we go okay so let's see what we have going on again just for this video's purpose let's say we already understood the bias damn this lowkey looks like a high impact news day but whatever let's say we already understood what the bias was for the day and let's say we knew we were looking for Longs that's another thing okay pause before we even get in here something you guys have to understand SMG Divergence is nothing without bias so if you guys don't know how to find daily bias awesome guess who has literally like six videos on that this guy I probably have more videos on Concepts and trading than all of the mentors combined okay so go watch the daily bias videos figure out how to find daily bias and then when you do that right right we're going to come into the market obviously understand our daily bias because let's say our daily bias is bullish but we see a bearish smt Divergence are we going to want to take that no because our overall bias is bullish right we're looking for bullish smt Divergence so keep that in mind okay we're not we're never this isn't just like oh I see an smt Divergence on the 15sec time frame so boom I'm going to enter with no bias no nothing it's like no bro like we need other confluences involved with this this is a Confluence in itself so let's look in here Wednesday the 10th of July let's see what's going on it looks like we have a little sweep of liquidity right here okay so we'll mark that out let's go over to NASDAQ and we can see boom sweep of liquidity as well on that market open let's scale down into the lower time frames and let's see if we can identify a smt ski so let's see here this is this low was made at 10:45 this slow was made at 11 this low was made at 11:15 let's go over yes see 10:45 11 11:15 okay so these were even maybe we could see one on the one minute time frame but I don't really prefer to go down and scale all the way down there to the one minute time frame to try and find smt Divergence on the one minute I prefer to keep it on the 5 minute for entry so on this day there wasn't an smt Divergence sometimes you won't even you won't find one but again a lot of people say hey I won't even enter a trade unless there is smt diverence so let's just go to the very next day and see if there is one and typically more often than not these things will happen within those macros so from like 950 to 1010 that's typically a hot spot so we can see 950 we made high and then at around 1010 we made a lower high on ES let's go and see if NASDAQ has a similar situation or if there's an S&T I think we have one here hell yeah look at that man and in line with the liquidity sweep so look what we have here I'm telling you guys the [ __ ] does just [ __ ] falls from the sky sometimes so boom Market opens right again let's assume that we understand the overall daily bias is bearish we see boom High time frame liquidity sweep off these relative equal highs what are we looking for we're looking for an smt Divergence what's a bearish smt Divergence one of the indexes making a high and then a higher high the other index making a high then a lower high so in this case we have NASDAQ making this high right here and then a higher high right here as well as sweeping out pretty much pre-market liquidity and then on top of that let's go over to es now and we can go in here and we can see es makes what a high right here boom and then a lower high obviously we have relatively choppy price action but we can see lower high gets made ES comes down towards this draw in liquidity so once we see that lower high get made and we see the higher high get made made on NASDAQ what are we obviously looking to execute on we're looking to execute on NASDAQ so we see that this was the higher high right so what can we start looking for within there so boom Oh wait I actually took this trade say this watch the July 9th trade recap for extra Confluence on this so boom what do we have here after the SMG Divergence gets made we've a breaking structure on top of that this imbalance gets disrespected on this candle maybe you wait until price comes all the way back up here to fill it but regardless we come in here maybe we just enter purely off the break of structure but we can see boom what does price do seeks out that same draw on liquidity that es wanted to seek out boom hit to the [ __ ] T and then price continues lower and lower so boom NASDAQ made a high higher high es made a High made a lower high so we know NASDAQ is the lagging index our overall daily buyas is bearish we scale down we look for our entry confluences whether it's break of structure inverse fair value Gap whatever it may be fair value Gap order block equilibrium breaker block I've made so many videos on confluences it's impossible for you guys not to choose one okay look for those and then boom price ends up seeking out the same draw liquidity that es did okay now let's try and find an example of bullish smt and then we'll wrap this up all right let's go to Tuesday so let's see here uh I think we did so we see here here on NASDAQ yeah bro look at this bro okay we make a high on NASDAQ right when Market opens during the macro 950 man I'm telling you guys if you guys think trading is a [ __ ] scam holy [ __ ] I literally just bro like ah this is the [ __ ] that makes me excited like I love this [ __ ] because it's like the [ __ ] that I'm teaching you cannot deny this [ __ ] that it doesn't [ __ ] work because like everything just gets put together every single time it's [ __ ] crazy anyways NASDAQ makes a high it then makes a lower high right during that macro let's go over to es okay we make a high right here damn and unfortunately this would have been a one minute smt so I guess that breaks breaks my rule but still relatively appable applicable of what we're teaching here we make a higher high right here but regardless we can see that es is the lagging Index right because at this point in time a 953 look at where es is compared to where now NASDAQ is so if we see es is still resting at that draw on liquidity where was NASDAQ at that time already at this was the same high that we highlighted on ES so we can see this high is significantly lower than the high on es es is the obvious lagging index we already took out this this 15-minute draw on liquidity on NASDAQ so what is the safe assumption to happen on ES go down towards that [ __ ] draw liquidity and what what did it do [ __ ] plummets draw liquidity draw liquidity and I took this straight too this was literally the most or not the most recent uh two days ago trade recap that I took and I can literally break this down for you guys smt Divergence from there okay what did we get break of structure to the downside I mean this is literally rinse and repeat of the trade recap that I did yesterday boom bullish imbalance that gets invalidated right here that in turn turns into whatever you guys want to call this like a inverse fair value Gap that gets flipped okay so boom inverse fair value Gap we also get a breaking structure we get boom extension back up into that inverse fair value Gap rejection off of it wow es is the lagging index boom shorts off that you can toss stop loss above here boom take profits [ __ ] hit boom you guys just learned a Confluence that can literally determine whether or not you guys take a trade again like I was saying a lot of people they really like to say like yeah I'm refusing to take a trade unless there's an smt Divergence it's a pretty [ __ ] smart idea because when we're coming into these highly executional price ranges again whether it's in draw liquidity whether it's a high time frame fair value Gap whether it's equilibrium or a discounted price range on the higher time frame and we're looking for price to reverse and continue the trend higher or lower in this case we can use this and find 5 minute 15minute smt Divergence to identify which index is the lagging index and then from there we scale down to the into the lower time frames and we use our [ __ ] bread and butter break of structure inverse fair value Gap fair value Gap getting filled order block getting filled breaker block getting filled equilibrium getting filled I've given you guys so many confluences to help improve your trading so you guys can understand where the market wants to go on a daily basis that being said that pretty much wraps it up please like and [ __ ] subscribe I know a lot of you guys be [ __ ] watching the video and not hitting like not hitting subscribe why not man I give out the most free game in the entire space and and give out the most videos all you guys be so so greedy with my videos bro I swear like y'all were on my kick stream which by the way you guys should watch that [ __ ] it's for free every single morning at 9:00 a.m. eastern time where I go over this exact [ __ ] that I just went over in this video tap in with those videos okay y'all were on my kick stream talking about you need to release more videos I've released three YouTube videos in the past 3 days some of you guys' favorite mentors don't even release three YouTube videos in 5 months bro y'all are mad greedy and I spoil you guys so just return the favor give me a like give me a subscribe with that being said I love and appreciate you guys peace out