Author: FX

SMT stands for Smart Money Technique. In forex trading, SMT divergence generally compares the price behavior of two correlated markets or currency pairs. The basic idea is simple: when two instruments normally move together but one creates a new high or low while the other doesn’t, the difference may reveal weakening momentum or a potential reversal.For example, EUR/USD and GBP/USD often show similar directional behavior because both are heavily influenced by the US dollar. Suppose EUR/USD breaks its previous H1 high by 8 pips, while GBP/USD remains 12 pips below its corresponding high. That failure to confirm can create a…

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