SMT Divergence

Trading 101

The fundamentals, in plain words.

The fundamentals, as they are written in the book. These are the notions to master before talking about cross currency analysis and SMT divergence.

The basics2 pages

01
Smart money vs dumb moneyWho moves the market, who supplies its liquidity, and why you need to learn to think like the former.2 min read
02
Timeframes and killzonesWhich timeframe to watch for your profile, and at what times the market really moves.4 min read

Structure4 pages

03
Market structureReading a naked chart, with no indicators: highs, lows, trend and consolidation.2 min read
04
Break of structure (BOS)The signal that a trend is continuing, and the trap of the breakout that isn't one.2 min read
05
Market structure shift (MSS)The moment the trend changes sides, and the three stages of a high-probability MSS.2 min read
06
The stop lossWhere to place it, and why the market comes looking for it.3 min read

Zones4 pages

07
Premium & discount rangeWhere price is expensive, where it is cheap, and the rule that follows.3 min read
08
Fair value gap (FVG)The holes the smart money leaves behind, and how to tell which ones are worth it.4 min read
09
Order block and breaker blockThe zones where big players loaded their orders, and their variant, the breaker block.5 min read
10
Optimal trade entry (OTE)Fine-tuning your entry price inside the discount or premium zone.2 min read

Putting it together2 pages

11
Internal and external liquidityWhere the stops are, why price goes after them, and how to choose your target.2 min read
12
Smart money reversal (SMR)The reversal model that brings all the previous concepts together, in six stages.3 min read