ICT liquidity purge + SMT Indicator

Explore the ICT Liquidity Purge + SMT indicator for Forex, crypto, and stocks. Identify premium/discount zones and SMT divergences on 3-minute & higher timefram

Published · Updated · Methodology: SMC

Part of: Liquidity Sweeps & Grabs

  • Methodology: SMC
  • Content type: indicator
  • Timeframes: 3-minute, higher time frames
  • Markets: Forex, crypto, stocks, Gold

Indicators used

  • ICT liquidity purge + SMT

Source video

Decoded from: Most Accurate Signal Indicator TradingView Traders Are Using Right Now by Fx MENTOR US — watch the original

Key timestamps:

  • 0:00 - Introduction to the indicator's features
  • 0:42 - How to find the indicator on TradingView
  • 1:10 - Explanation of pivots and their use
  • 1:35 - Understanding discount and premium zones for stop loss placement
  • 1:55 - SMT divergences explained
  • 2:40 - Combining premium/discount zones with divergences
  • 3:20 - Importance of liquidity confirmation

Strategy overview

A liquidity purge is the run that clears resting orders beyond an obvious high or low before price reverses — and on its own, it is ambiguous, because a purge and a genuine breakout look identical while they are happening. What distinguishes this entry is that the purge is never asked to testify alone: it is paired with SMT (Smart Money Technique) divergence, a reading taken from a second, correlated instrument. The question stops being "did price take out that high" and becomes "did its correlate take out its matching high as well" — the failure of the second chart to confirm is what carries the information. That is a different epistemology from most liquidity work: corroboration comes from outside the chart you are trading, not from a lower-timeframe confirmation inside it.

The video is a tour of a third-party TradingView script — published under the name Marcus 149 — rather than a method drawn by hand, and its chapter structure shows what that changes. Real runtime goes to locating the indicator on TradingView and to what each of its layers displays: pivots, premium and discount zones, and the SMT divergences themselves. The ordering is worth noting. Premium/discount zones are introduced in the context of stop-loss placement, not entry, and the closing chapter is about combining those zones with the divergences. So the tool as presented contributes at least as much to where risk sits as to when to act — the signal and the stop are drawn by the same instrument.

Two honest caveats belong on this page. The title's "Most Accurate Signal Indicator" is the channel's own framing, not a verified claim, and nothing here measures it. And no rule set was extracted from this video, so what follows is orientation to the concept and to how the tool frames it — not a specification you could trade from. Anyone adopting an indicator-led approach like this also inherits the script author's undisclosed choices about how pivots are detected and which correlate is compared, which is the part that a 3-minute execution chart, referenced against higher timeframes, will magnify rather than smooth out.

Topics

ict liquidity purge smt · smc strategy · tradingview indicator · forex strategy · crypto trading strategy · stocks trading strategy · pine script indicator · ict trading · liquidity trading · smt divergence strategy · price action trading · algorithmic trading · day trading strategy · swing trading

Frequently asked questions

What is an ICT liquidity purge?

A liquidity purge is a move that runs through an obvious swing high or low where stop orders rest, taking that liquidity before price turns back. In ICT vocabulary it is the mechanism by which an apparent breakout becomes a reversal — the sweep is treated as the cause of the move that follows, not as a failure of it.

What is SMT divergence and why combine it with a liquidity purge?

SMT (Smart Money Technique) divergence compares two correlated instruments and looks for the moment they stop agreeing — one makes a new high or low while the other does not. Paired with a purge, it supplies corroboration from outside the chart being traded: the sweep says liquidity was taken, and the divergence says the correlated market did not follow, which is the discrepancy the approach is built around.

Why are premium and discount zones discussed for stop-loss placement?

Premium and discount refer to where price sits within a measured range — the upper half being expensive to buy, the lower half cheap. Using those zones for stop placement anchors risk to a structural level in the range rather than to a fixed distance, which is how the video introduces them: as a reference for where the stop belongs, ahead of any discussion of entries.

How should I evaluate an indicator-based approach like this before using it?

Treat the indicator's output as a hypothesis, not a result: check on historical data whether the flagged purges and divergences actually preceded the moves, and be aware that a third-party script encodes its author's undisclosed detection choices. Strategy Decoder extracts the structure of strategies presented in videos so you can assess and test them on TradingView instead of taking a title's claim at face value.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

Other versions of this strategy

More decoded strategies