A Deeper Dive Into SMT Divergence - The Key To Price Anticipation

What's up, guys? So, today we're going

to be going over SMT. You guys have been

begging for this video. I wasn't going

to make it just

because I don't know. It's just too

good, man. It's just too good. Now, I'm

not going to show everything, but I'm

probably going to show like 40% or

something like that, which is more than

enough, man. Like, you're not going to

find this stuff anywhere. Now, it's not

all of this stuff is obviously like

brand new or anything like that. I'm not

claiming that, but you're not going to

find it uh for free. Like, try to go

look up Tuesday SMT on YouTube. You're

not gonna find it. Try to go look up

lagging asset. Try to go look up shank

switching. You're not gonna find it,

bro. So, like what I'm giving you here

for free, dude, is a lot, you know? Um,

like I said, you guys have been wanting

this. I know it's going to help a lot of

people. Uh, SMT is obviously a very

popular concept, very extremely good

concept, but it's it can be very

damaging, right? because they form

everywhere. It's like which one do I

pick? Um, which one's fake? Which one's

real? Well, you're about to find out.

Um, so yeah, let's get into it. This is

really the key to my trading. So, you

guys see me trade almost every day. I'm

demanding this type of stuff. It's not

just an SMT, okay? It's like an S&P

that's confirmed essentially and not an

S& is not confirmed by CSD. That's not a

confirmation to a to a SMT. It's this

type of stuff and like I said, not

teaching all of it, but you're you're

going to learn enough to where like you

can apply it to your trading and stuff.

So, what is an SMT? So, there's many

forms of SMT. So, here's one of them,

the most commonly um referred

to is an SMT between two correlated

markets and one asset takes out the

high. So they're you know correlated

markets are going to create the same

highs and lows and one asset is going to

take out that high where if we compare

uh you know the chart to the other asset

it doesn't take that high. So that's the

correct correlation which is hinting a

reversal. So whenever you trading to a

key level or creating an

SMT I trade swing points so you can

refer to this like the fractal model. We

wait for a candle to closure or a swing

point to form. That's our first instinct

right is because the market can't

reverse at a swing point. Hence titr's

fractal model as a whole idea behind his

model. So we're waiting for a swing

point. Okay. Now where a lot of people

go wrong is they want to focus on they

only want to focus on this asset. Okay.

Where it's the one that sweeps. But you

need to reverse engineer that and you

need to be looking at this asset. Okay?

Because this asset here needs to

reverse. It needs to trade trade in this

direction. Uh which obviously we want

this asset to go. So it's like

correlated

markets they need to be in correlation

to expand. Okay? So if this asset fails

to reverse this one won't reverse. So

you need both of them to reverse to

expand you know away from this uh sweep

or this SMT etc. So what you want to see

this is what's going to look like right

where this is a true reversal where both

assets expand ideally right um to a very

simple but how do you gauge that this

asset will expand well this is where

strength switching comes in so what we

want to see ideally is this asset that

was um previously stronger right because

it is stronger we wanted to momentarily

switch strength uh right after this S&P

right to catch up to this asset so they

can do what? So they can become

correlated so they can expand. Okay,

this is how markets expand. Um so we

measure that which which uh with

strength switch or strength switching.

So like I said, as soon as we create

this higher high, we're going to be

looking we're going to be gauging

switching and strength a couple

different ways. So here's one of them.

Immediately following the SMT that swept

the displacement leg is going to create

a larger gap hinting uh that it's weaker

right momentarily to catch up to this

one where this asset is creating a

larger or smaller gap. So that's hinting

that this asset is switching to the

weaker one, right? Or it was originally

stronger. Another one will be this asset

will not fill in a gap while this one

will. They're going to create the same

swing. uh lows in the market. They're

going to create the same opposing

candles where this asset closes below

the

low, you know, before this one or maybe

this one doesn't close below the low or

this one CSTs first before this one. So,

these are just all different types of

switching strength, right? So, they're

going to create the same displacement

legs where maybe this displacement leg

is larger than this one or maybe the the

retracement is shallower than this one.

Again, it's just a switch in strength.

Now, this is what it's going to look

like on the um kind of like the overall

view, right? Where we can kind of view

this maybe as a this is the hourly

chart, for example. Maybe this is a

daily swing high. We have our first SMT.

So, as soon as we create an SMT, what's

the things we look for? Well, it's a

swing point, but you know, the main

thing we want all the markets to expand

away. So, we're looking at this asset

and we want it to momentarily switch to

the weaker asset, right? So, what you're

going to see is this asset is more so

expanding. Well, this one is going to be

like more lackluster, but I don't want

it to expand in the opposite direction.

I want it to either be making deeper

retracements or having, you know, uh,

smaller gaps or consolidating, right?

It's very, it's still continuation, but

it's it's lackluster. Well, this asset

is expanding. So, why is it doing that?

to catch up to this asset. Okay, so what

you're seeing is, you know, 2CMT, which

is something we're going to get into

later on, but this is what's going to

look like. Okay, this is like the whole

picture

here. Let's get into a lagging asset.

So, a lagging asset is when we create an

SMT, but it doesn't reverse, right? We

don't have that expansion away on the

asset that swept. What if it just

consolidates? It's just like phases of

price. If we expand to a high or maybe

expand through a high well and then

maybe consolidate well those are not

reversal signatures. So what does that

tell you? That this asset is not going

to reverse because this asset over here

if it didn't reverse and this one can't

reverse. So oftent times this is when we

can trade the lagging asset to actually

trade into the SMT uh high that got

that's essentially fake. Like this is a

fake SMT. Okay, that's how you filter

SMTs. It's like if the asset that sweeps

doesn't reverse, well, it's a fake SMT.

We can actually target that high that

was previously an SMT, if that makes

sense. Now, what's the most ideal

scenario to trade a lagging asset? Well,

it's a switch in strength, right? We

want this asset that was previously

lagging, that was weaker, right? We

wanted to switch momentarily bullish to

catch up to this high or this high,

right? Um, one form where there's an SMT

at the lows which is going to be the

trigger. This is not the ideal version.

It's actually this where we create a

higher high because that would be

signifying what a switch and strength.

So here you go lagging asset shrink

switch. This is the ideal scenario and

there's a couple different forms of this

um but this is one of them right um

where it's the SMT. It can also be you

know where this asset is creating larger

gaps while this one isn't. So again

there's different types of forms. I'm

not showing all of them. um they're not