SMT (Smart Money Technique)

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**SMT Divergence** occurs when two correlated pairs (e.g. EUR/USD and GBP/USD) fail to confirm each other's move.

If EUR/USD makes a new high but GBP/USD does NOT — this is a bearish SMT signal.

It indicates that smart money is not participating in the move, which often precedes a reversal.

Use SMT in confluence with other concepts like OBs, FVGs and liquidity sweeps for highest accuracy.

7 questions

1.What does SMT stand for?

Smart Money TechniqueSimple Market TrendStandard Market TimingSession Momentum Trigger

2.SMT Divergence occurs between:

Two unrelated commoditiesTwo correlated currency pairsA currency and a stockTwo timeframes of the same pair

3.If EUR/USD makes a new high but GBP/USD does not, this signals:

A bullish SMT divergenceA bearish SMT divergenceNo signal at allA liquidity grab only

4.What does SMT divergence indicate about smart money?

It is aggressively buyingIt is not participating in the moveIt has left the market permanentlyIt is manipulating news data

5.SMT is best used:

As a standalone strategyIn confluence with other concepts like OBs and FVGsOnly on weekendsOnly on the 1-minute chart

6.SMT divergence often precedes:

A market holidayA market reversalA broker rolloverA spread increase

7.Which two pairs are commonly compared for SMT due to their correlation?

USD/JPY and XAU/USDEUR/USD and GBP/USDAUD/USD and USD/CADEUR/GBP and USD/CHF

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