SMT Divergence Oil Indicator Download for MetaTrader 4 - Free - [TFlab] - MT4/MT5 Resources

The SMT Divergence Oil Indicator analyzes price movements by identifying divergence patterns within the MetaTrader 4 indicator .

The tool can detect divergences between Crude Oil (XTIUSD) , the USD/CAD currency pair (USD/CAD) , and Brent Crude Oil (XBRUSD) , plotting divergences and buying and selling pressure directly on the chart.

SMT diffuse oil indicator table

The main features of the SMT Divergence Oil Indicator are summarized in the table below.

Quick overview of indicators

This indicator focuses on divergence analysis between multiple related assets , utilizing these to identify trend reversals or divergences from trend continuation strength .
When the primary asset (the base currency) experiences divergence , the indicator shows the strength of the divergence in the underlying assets .

Indicators are in an upward trend

During a bullish trend, the Oil Index Smart Currency Divergence Indicator identifies the differences between Crude Oil, Brent Crude and USD/CAD currency pairs . The USD/CAD pair formed lower lows before reversing into an uptrend as crude oil and Brent crude oil peaked and began to decline.

In this case, the breakout peaks for Brent and USD/CAD are shown in gray, while the underlying asset (crude oil) is highlighted in green, indicating a potential trend reversal.

Indicators are in a downward trend

In a bearish trend, the Oil Index Smart Currency Divergence Indicator detects the divergence between Crude Oil, Brent Crude and USD/CAD currency pairs . Here, Crude Oil and Brent crude oil bottomed and started an uptrend, while USD/CAD moved in the opposite direction and experienced a price decline.

The inverse movement between oil prices and USD/CAD is a key signal for traders, helping them anticipate potential trend reversals and liquidity changes in the market.

SMT differential oil indicator setting

The figure below shows the complete settings panel of the indicator, including the following sections Display , Symbols , and more:

• First Symbol: Select the main symbol
• Second Symbol: Select the auxiliary symbol
• Third Symbol: Select the third level symbol
• Find trend divergences: Find trend divergences
• Maximum distance between trend divergence swing points: Set the maximum distance for divergence detection
• Finding High/Low Divergence: Identifying SMT Line Intersections
• Finding pushed symbols: detecting SMT line overlap

Conclusion

The SMT Divergence Oil Indicator is a trading assistant in MetaTrader 4 which focuses on identifying differences between related assets.

By analyzing the price action of primary and secondary asset price movements, this indicator enhances traders' ability to detect trends, spot reversal points, and predict potential market changes.