ICT SMT Trading Strategy

Learn the ICT SMT Trading Strategy that capitalizes on smart money techniques. This tutorial explains the rules and application of this ICT-based approach.

Published · Updated · Methodology: ICT

Part of: ICT Concepts

  • Methodology: ICT
  • Content type: strategy

Source video

Decoded from: Finally I Launched My ICT SMT Trading Strategy After Months of Testing | Trading Strategies by Neeraj joshi — watch the original

Strategy overview

SMT (Smart Money Technique) divergence is the ICT idea that two correlated instruments should confirm each other's highs and lows, and that the moment one makes a new extreme while its partner fails to follow, the split reveals which side is being engineered. It is a relational read rather than an indicator read: nothing is measured on a single chart in isolation, and the signal only exists because a second, related market is being watched at the same time.

This entry decodes "Finally I Launched My ICT SMT Trading Strategy After Months of Testing" from the channel Neeraj joshi. The framing is worth noting: the video is presented not as a textbook explanation of SMT but as one trader's own configuration, released after an extended period of personal testing. That distinction matters for anyone comparing SMT material — generic explanations describe what a divergence is, while a creator's own version commits to specific choices about which pair of instruments to track, which highs and lows count, and what has to happen after the divergence before a trade is considered.

SMT is also one of the ICT concepts least often traded on its own. In most ICT-style workflows it acts as confirmation layered onto a liquidity event or a structural shift, which is why the practical questions around any SMT strategy are about sequencing and correlation choice rather than the divergence itself. The specifics of how this creator resolves those questions are laid out in the source video linked on this page.

Topics

ict smt strategy · ict trading · smart money concept · ict trading strategy · pine script · trading strategy · tradingview strategy · price action strategy · forex strategy · swing trading

Frequently asked questions

What is SMT divergence in ICT trading?

SMT (Smart Money Technique) divergence occurs when two correlated instruments disagree at a key level — one makes a new high or low while the other fails to match it. ICT traders read that disagreement as a sign that the move was engineered rather than a genuine continuation.

Which instruments are used for an SMT comparison?

SMT requires a correlated pair, so traders typically compare instruments that normally move together — index futures against each other, related currency pairs, or an asset against its usual counterpart. The choice of pair is a defining decision in any SMT strategy, since the divergence only means something if the correlation is real.

Is SMT divergence enough to enter a trade on its own?

Most ICT-style approaches treat SMT as confirmation rather than a standalone trigger, combining it with a liquidity sweep, a structural break, or an imbalance before acting. How a specific strategy sequences those elements is what separates one SMT variant from another.

How can I evaluate a strategy like this one before trading it?

Watch the source video to understand the creator's exact conditions, then test the logic on historical data across the correlated instruments involved before risking capital. Strategy Decoder catalogs strategies like this one from their video sources so you can find and assess them in one place.

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.

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