OPEN-SOURCE SCRIPT
SMT Divergence + IFVG Strategy
Trading Schedule: They trade when the New York stock market session begins (a major time for activity in trading).
Determine a Direction (Bias): They start by looking at higher timeframes (like daily or 4-hour charts) to decide if the price is likely to go up (bullish) or down (bearish).
Zoom In for Details: Once they have a general idea of the market’s direction, they switch to lower timeframes (like 5-minute or 15-minute charts) to look for specific trading opportunities.
Look for Patterns:
SMT Divergence: This likely means they compare price movements across similar assets (or indices) to spot inconsistencies that suggest a potential reversal or continuation of trends.
Inverse Fair Value Gap: They identify gaps in price (on the chart) where the market may want to return or "fill in" before continuing in a certain direction.
Set an Entry Point: They wait for the price to "tap" into their identified level (like a support or resistance zone) before entering a trade.
Set a Target: Their goal is to target "resting liquidity," which means areas where other traders are likely placing stop-losses or take-profits, and use those as price movement goals.
Risk-to-Reward Ratio: For every trade, they aim to make 2 to 3 times the amount they’re risking (a 1:2 or 1:3 risk-to-reward ratio).
Win Rate: They win about 70% of their trades, which means most of their trades are profitable.
In short, they have a systematic approach where they identify a market trend, spot good entry opportunities based on patterns, and stick to a strategy with good risk management. Their success comes from consistency and discipline.
Determine a Direction (Bias): They start by looking at higher timeframes (like daily or 4-hour charts) to decide if the price is likely to go up (bullish) or down (bearish).
Zoom In for Details: Once they have a general idea of the market’s direction, they switch to lower timeframes (like 5-minute or 15-minute charts) to look for specific trading opportunities.
Look for Patterns:
SMT Divergence: This likely means they compare price movements across similar assets (or indices) to spot inconsistencies that suggest a potential reversal or continuation of trends.
Inverse Fair Value Gap: They identify gaps in price (on the chart) where the market may want to return or "fill in" before continuing in a certain direction.
Set an Entry Point: They wait for the price to "tap" into their identified level (like a support or resistance zone) before entering a trade.
Set a Target: Their goal is to target "resting liquidity," which means areas where other traders are likely placing stop-losses or take-profits, and use those as price movement goals.
Risk-to-Reward Ratio: For every trade, they aim to make 2 to 3 times the amount they’re risking (a 1:2 or 1:3 risk-to-reward ratio).
Win Rate: They win about 70% of their trades, which means most of their trades are profitable.
In short, they have a systematic approach where they identify a market trend, spot good entry opportunities based on patterns, and stick to a strategy with good risk management. Their success comes from consistency and discipline.
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun das Script auch andere Trader verstehen und prüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden. Die Nutzung dieses Codes in einer Veröffentlichung wird in unseren Hausregeln reguliert. Sie können es als Favoriten auswählen, um es in einem Chart zu verwenden.
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