SMT is easily the most powerful tool you can use in trading. It’s basically a divergence between assets that usually move together. To spot it, you need to watch at least one other correlated asset and wait for their prices to stop matching up.

There are different ways to see this, but the strongest one is when one asset sweeps liquidity while the other fails to do so. This is known as a “failure swing.”

When you're looking for this, the sweep and the failure swing have to happen on the exact same highs (or lows) at the same time on both assets. Just keep an eye on obvious levels on both charts and wait for one to break the level while the other stays below it.

Adding SMT to your plan can help you find your bias for everything from long-term moves to just your daily direction. It’s always there on the charts right before a reversal happens—go check for yourself, it never misses.

Closely correlated assets to watch when looking for SMT:

Indicies: Nasdaq (NQ) (US100) S&P 500 (ES) (US500) Dow Jones (YM) (US30)

Forex: US Dollar (DXY) EUR/USD GBP/USD

Commodities: Gold (XAUUSD) Silver (XAGUSD) Copper (XCUUSD) US Dollar (DXY)

Bonds: T-Bond Futures (ZB1!) Ultra 10-Year Treasury Note Futures (TN1!) 5-Year T-Note Futures (ZF1!)

<u>**Here are a couple examples of SMT.

Bearish SMT:**</u>

Bullish SMT: