Transcription
Yes, my people. Hope you are doing well.
So, SMT, it seems to be like a magic word that's flying around everywhere nowadays. I'm going to show you a simple way you can use it with my AMN model as an extra confluence to make sure your trade is really A+ and get a very high win rate. So, without wasting your time, let's get straight into it.
So, before doing that, what even is an SMT? So, right, majority of my trades are in NQ. So, when I'm looking at NQ, you can also look at ES. And all it is is when one makes a higher high or uh and one doesn't make a higher high. One makes a lower low and one doesn't make a lower low. So for example, let's say this is my NQ chart here and let's say this is my ES chart here. So you can see here on NQ for example, it doesn't matter which one is which. I couldn't care less. So majority of my trades are pretty much I just like to trade NQ. just a personal favorite. So, I don't care if my higher high is made on NQ or my higher highs is made on the ES. It doesn't care less to me. As long as we have an SMT, I'm happy.
So, as long as one, let's say this was NQ, right? You can see ENQ did indeed actually make a higher high. Whereas ES did not make a higher high. So, this here where we made a lower high here, but a higher high here, this is simply an SMT. And all that you need to know is that means price could possibly reverse. Okay, so keep that in mind. All that means is price could possibly reverse when you see an SMT.
Now let's get into a downtrend example. So again, right, if one takes the low and one doesn't take the low, what do we call this? Look here, one made a lower low here. The same low price well price didn't take it out. We actually made a higher low. And again, this could be ES. This could be NQ. This could be ES. This could be NQ. I do not care which one is which, okay? I just want to see an SMT. What does that tell me again? Price can possibly now reverse back to the upside because we're pushing down here. We got an SMT. Price could possibly push up.
Now, there are instances where you two main things. There are instances where people think they have an SMT, but all that it means is one is stronger or weaker than the other. So, let's say this is my ENQ and this is my ES. Okay, people think, oh, look, right, you might see this. Look, ENQ has taken out the low and you're like, oh, sick. Look, ES hasn't taken out the low. We're going to This is an SMT. We're going to boom. We're going to reverse. Boom. And then ES comes and takes out the low, too. Now, obviously, this is not an SMT because both of them have taken out the low. So, there are situations when sometimes price is just weaker than the other indices. So, if ENQ is weaker than ES, obviously, we're going to take the low first. ES is just lagging. It's just following a bit behind. If ES is weaker, it's going to take the low first and ENQ is going to lag.
So what we want to see is when one takes a low, let's say NQ takes this low and ES hasn't taken a low and we're looking for an SMT. Okay, we want to see a shift in structure after and I don't want to see more follow through. So if this is an SMT, okay, because we can see ENQ has taken the low, ES has not taken the low. I then want NQ to now push higher. Okay, the one that hasn't taken the low or the one that hasn't taken the high, I want it to then push higher. I don't want to see more follow through to the downside because now this means that this isn't an SMT. This is just weaker and this one is just taking a bit more time to get that follow through.
So what's a good SMT? When one sweeps we immediately come back. Okay, now I know that this is a good SMT because let me delete this. You can see that. Okay, this didn't sweep. This swept and immediately reversed. So this is an SMT. Not if it swept, touched, boom, lower low. Then I know, okay, this isn't going to be an SMT. This is just stronger than this. And this is just going to take a bit more to follow the same route. So hope that makes sense.
And now another key thing is if you look to trade every SMT, you are going to get absolutely cooked and you're going to be terrible. Right? Let's say there's 10 SMTs you see a day. Probably three of them actually work. So, you want to use this as an extra confluence. You're not just trading every SMT. Okay? I I don't really care about SMT if I see it. It's just an extra confluence that I know that this is an A+ trade.
What do I mean by that? Well, my AMN model is like this, right? Boom. We have a zone here. So, let's say this is my ENQ chart. going to care less. And this is my other one. So, let's just say to label it that this is my Q chart and this here is my ES chart. But for those who know, I'm just waiting for this low to be swept and I'm looking for a potential long. I'm waiting for this low to be swept. I'm looking for a potential long. So, this is my higher time frame. Let's say that this is my M15 in my orange.
Now, as price comes into my area, okay, as price comes into my area because ES and NQ, they follow each other, they're both going to be in my area. I'm both going to be looking for longs. If there is any SMT, okay, in this area here, I could not care less. Okay, I'm only looking for price to reverse back to the upside now once we have swept and come into my POI. Okay, do not look for SMTs here, here. No, only when I'm looking for an entry. I only look for an entry at this point here. So now I know that if I get an SMT on my lower time frame here that this is a good place to enter.
So once we come here now if I drop down to the one minute and I look for an entry and I can see my ENQ has done this but my ES has done this. What happened here? Well here we had a low make this blue to show the lower time frame. Let's say the one minute. All right. So, I normally look for a market structure shift to enter. Now, here I can see that NQ did not take out the low, but I can see that ES did take out the low. So, once I get an SMT paired with that market structure shift, right, you can see the reverse. And look, ES once we sweep the low, we don't continue to break structure to the downside, we follow route. Perfect. Now, I have my shift structure with an SMT, which means, right, I'm looking for price to reverse. SMT means that price is going to reverse. This is an A+ trade for me to then take my long here. Boom. Boom. Okay. Boom. Boom. And again, I don't care which one. I tend to trade at ENQ. So, I just take my position on ENQ. I don't care which one gave me the lower low, higher high, etc. It's all good.
So, downtrends is the exact same example. And let me actually show you on the charts here. So, if I'm expecting sells in a higher time frame point of interest, that is it. Then I can look for an SMT to then confirm that bearish bias. So here if we look at structure high low high and then we actually shifted structure to the downside here. So performing this bias I can see that we shifted structure here. We even have a fair value gap in which we have taken the load that tapped into it. All right. This to me is now potentially a bearish bias from this high to now this low. Okay. And I'm looking for price to retrace into here and then continue lower.
When I look for an area of supply within here, I can see where we have this lovely area of consolidation. If I drop down to a lower time frame, right, this area of consolidation also has a tap in it. This video isn't going in my model. There's so many YouTube videos on my account going on my model. But this is my six tap here. So, I'm looking for sales after this high here has been swept. Okay, I'm not looking for an SMT at all until I'm looking for an entry. I'm only looking for an entry once we sweep this.
So, let's see what we got. Boom. We have now swept this high here. And I'm looking for a sign that price wants to now reverse because we're in my higher time frame bearish bias, higher time frame, POI, and we have swept the liquidity I wanted to swap to. So, what can I look for? I can look for an SMT. What can I see here? Let me play it out a bit. Also, if you go to indicators and you just type in SMT, right? SMT divergence lux algo, it automatically tell you when there's an SMT between ES and ENQ. So, let me actually turn that on. Let me adjust the settings. You can see here as well just so I can turn off YM just want to use ESNQ. So let me see if now we swept liquidity we can form any SMTs within this area here. Okay, here is an SMT Y. So let's mark out the 252 high on my one minute chart on NQ. Okay. and it called an SMC here at the 3 a.m. high. So from the 252 high to the 3:00 a.m. high, this is a lower high, right? We have not made higher high. Let me go to ES on the same time, same chart. One minute, same time frame. Let me mark out the 252 high here. Let me mark out the 3:00 a.m. high here. What did we notice? ES made a higher high and Q made a lower high right from the 252 to the three. So this is an what? An SMT.
So we've got an SMT. Most importantly, when we're already looking for sells, all right, all these SMTs here, I couldn't care less about this SMT. Now, when I'm looking for a sell, this is my uh like high confidence that now, okay, sign price of price. Now I pair that with a structural shift. So in here, I want to see at least a low get taken. So let's say we can run that low. Boom. We ran that low. Perfect. So now I have higher confidence that we are continuing to take out this higher time frame low. We have an SMT. And what did I talk about as well? When the SMT happens on one, I don't then don't want to see further breaks to the upside because all that tells me is this is weaker. This isn't going to be SMT and we are going to continue higher. But look after sweeping that. Can you see how we immediately dump as well? We don't get that further breaks up. So boom, this is now higher confidence. Let's say I can just draw a fib to get a good entry around this 50% mark. Right. Stop loss at the high target this lower low there. Simple one to two. Let's see. Boom. We get tagged in and boom, smashes TP.
So yeah, man. Can you see how when we combine SMT with your model as an additional confluence, then it can be a Chico, not by itself. It's not some magic thing that's going to change your life. So, hope this video helped. If you did like it, feel free to leave any subscribes, any comments, any likes. I appreciate it. I'd also have a premium Discord where you can watch me live stream my trading every single day. Come trade with me and ask me any questions you have at all. Apart from that, appreciate your time as always and I'll catch you in the next.