MT5 SMT Divergence Indicator

Classic SMT detects the condition where two correlated instruments stop moving in the same direction at a structural extreme — one confirms the move, the other doesn’t. Bearish Classic SMT appears when the analyzed instrument prints a fresh high and the correlated one does not confirm it. Bullish Classic SMT mirrors that logic at lows.

Hidden SMT captures the opposite structural relationship. The correlated instrument extends further, the analyzed instrument does not. Where Classic SMT is typically associated with reversal conditions, Hidden SMT is generally read as continuation.

Both types work independently for bullish and bearish conditions — Classic only, Hidden only, or both running at the same time.

Classic SMT Divergence

Hidden SMT Divergence

Forming picks up the divergence while the underlying swing is still developing. The structure hasn’t been validated yet — which means it can still resolve without becoming a confirmed event. Forming SMT appears earlier, before the swing is fully validated.

Confirmed waits. The swing behind it has to pass Swing Strength validation before anything is drawn. By the time a Confirmed SMT appears, the structural picture behind it is complete.

Both states can run simultaneously. If the swing later passes validation, the Forming marker is replaced by the Confirmed SMT. If it does not, the Forming marker stays on the chart while Forming SMT markers are enabled — it doesn’t disappear retroactively.

Confirmed SMT

Forming and Confirmed SMT

The settings that control how swings are identified directly affect what gets detected and what gets filtered out.

Swing Strength defines what qualifies as a structural high or low. A higher value means the indicator waits for more developed swing points before they’re accepted into the detection logic. A lower value makes it more reactive to shorter-term structure.

Vertex Match Tolerance handles the timing gap between two instruments’ swing points. Correlated instruments rarely print their highs and lows on exactly the same bar — this setting defines how many bars apart they’re allowed to be and still count as a matching pair.

SMT Min Bars Distance sets a minimum separation between the two swing points that form a divergence. Structures that develop too quickly and too close together are excluded.

A minimum displacement filter adds one more layer — requiring a defined amount of price movement between swing points before the divergence qualifies. Displacement can be measured in ticks or as a percentage.

Available filters:

• Volume Filter
• EMA Filter
• Higher Timeframe EMA Filter
• VWAP Filter
• Kill Zones Filter

The Volume Filter evaluates current volume against a rolling lookback average. Divergence conditions that form below the configured volume threshold are not registered.

The EMA Filter and Higher Timeframe EMA Filter both work around directional alignment — one on the current chart timeframe, the other on a selected higher timeframe. A divergence only qualifies if price is positioned on the correct side of the relevant moving average.

The VWAP Filter applies the same directional logic relative to session VWAP — bullish conditions require price above VWAP, bearish conditions require price below.

The Kill Zones Filter restricts detection to specific session windows. Asia, London, New York, and a custom session can each be configured independently. Divergence conditions that form outside the active sessions are ignored.

Kill Zones Filter

Each filter is independent. Any combination can be active at the same time.

Divergence lines are drawn across both the primary chart and the correlated sub-window simultaneously, so the structural divergence between the two instruments is visible in context rather than having to be reconstructed from memory.

A second correlated instrument can be added alongside the first, allowing three-way comparison from a single chart. Each correlated instrument gets its own visual representation in the sub-window, and SMT structures from the first and second comparisons use separate color sets so they remain visually distinct.

Bullish and bearish SMT structures have separate color settings, and Forming and Confirmed states each use their own color — so all four combinations are visually distinct on the chart at the same time. When a second correlated instrument is active, its SMT structures use a separate color set that doesn’t conflict with the primary comparison.

Classic and Hidden SMT labels can be renamed or turned off entirely. Swing label color and font size for both labels and swing points are configurable independently.

The correlated sub-window includes controls for the instrument’s value display — font size, color, and opacity can all be set separately from the main chart layout.