SMT Divergence Oil Indicator for MetaTrader 5 Download - Free - [TFlab]

The SMT Divergence Oil Indicator focuses on analyzing divergences between energy-related assets, using these divergences to assess the potential strength of trend reversals or their continuations.

When a divergence is detected on the primary (mother) currency chart, the indicator highlights divergences in related assets as well. In cases of positive divergence, the SMT indicator appears red, signaling a potential bullish continuation.

Conversely, negative divergence turns the indicator green, indicating market weakness and the likelihood of a bearish reversal.

SMT Divergence Oil Indicator Table

The key features of the SMT Divergence Oil Indicator are summarized in the table below:

Indicator in an Uptrend

In the chart below, the three key assets are compared: Crude Oil (XTIUSD) and Brent Crude (XBRUSD) have both formed Higher Lows compared to previous points, while the USD/CAD pair has recorded a Lower Low, indicating a delayed uptrend.

This price action discrepancy signals a divergence among these related assets, serving as an indicator of potential market shifts.

Indicator in a Downtrend

In the following chart, the primary asset (Crude Oil) along with Brent Crude (XBRUSD) begins a downtrend, while the USD/CAD pair forms a Higher High during the same period.

This negative divergence highlights the inconsistency in price movements across related assets and signals potential trend weakness and possible reversal.

SMT Divergence Oil Indicator Settings

The image below displays the complete settings panel of the indicator:

• First Symbol: Select the primary symbol
• Second Symbol: Select the secondary symbol
• Third Symbol: Select the tertiary symbol
• Finding the Trend Divergence: Locate trend divergences
• Max Distance Between Swing Points for Trend Divergence: Set the maximum distance for divergence detection
• Finding the High/Low Divergence: Identify SMT line intersections
• Finding the Pushed Symbol: Detect SMT line overlaps

Conclusion

The Smart Money Divergence (SMT) is a powerful tool within MetaTrader 5 indicators designed for identifying divergences among correlated assets.

The SMT Divergence Oil Indicator enhances market analysis by comparing price movements of related assets, helping traders better understand market behavior patterns.

By simultaneously analyzing price fluctuations in both primary and secondary assets, this indicator helps detect potential trend shifts, identify reversal zones, and evaluate the relative strength of buyers and sellers.