Mastering SMT
SMT
By ICTSILVEREDGE
What is an SMT
SMT (Smart Money Technique): It’s when two
correlated markets move out of sync, showing
where Smart Money is likely taking the other
side of retail trades.
Example: GBPUSD makes a Lower Low, but
EURUSD makes a Higher Low at the same
time.
This divergence signals hidden institutional
activity, liquidity is being grabbed in one
market while retail follows the obvious
move in the other.
Use SMT as confirmation for bias, entries, or
potential reversals.
GBPUSD EURUSD
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There are two types of SMT (Smart Money Technique):
1-Positive Correlation SMT:
Two correlated pairs usually move together,
but one makes a different high/low than
expected.
Example: EURUSD and GBPUSD usually rise
together, but one lags, showing hidden
institutional activity.
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2-Negative Correlation SMT:
Two correlated pairs usually move opposite,
but one moves against the expected opposite
move.
Example: EURUSD rises while DXY also rises
(normally they’d go opposite), signaling Smart
Money intervention.
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Using SMT For Entry
Spot SMT: Look for divergence between correlated pairs
(positive or negative) to identify hidden institutional activity.
Wait for MSS + Displacement: Confirm the market structure
shift and impulsive move in the expected direction.
Enter on FVG retracement: Once price retraces into the Fair
Value Gap, take the trade in line with the bias.
EURUSD 5min
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Correlated Assets
Postive Correlation
ES & NQ & YM AUDJPY & NZDJPY
EURAUD & GBPAUD AUDCAD & NZDCAD
GOLD & SILVER EURCAD & GBPCAD
EURNZD & GBPNZD EURJPY & GBPJPY
EURUSD & GBPUSD DXY & USDJPY
EURCHF & GBPCHF DXY & USDCAD
AUDUSD & NZDUSD DXY & USDCHF
AUDCHF & NZDCHF BTC & ETH
Negative Correlation
DXY & EURUSD
DXY & GBPUSD
DXY & NZDUSD
✅ Simple rule: SMT = watching pairs “disagree” with their usual
correlation to spot institutional moves.
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