Notes
- Michael does not analyze every high and low in correlated or inversely correlated markets just to look for divergences. He looks for SMTs (divergences) in markets where he already has a predetermined bias.
- We should look for SMT divergence in locations where the price is testing some PD arrays, such as Order Block or Fair Value Gap.
- The meaning of SMT:
- Smart Money Technique.
- Smart Money Tool.
- Smart Money Time.
- The highs and lows of the previous three days are important levels to watch.
- Not every imbalance is FVG. The narrative determines what FVG is.
- Risk-off scenario: If the US dollar’s value rises, foreign currencies will fall, and all other asset classes are likely to fall as well.
- Risk-on scenario: If the US dollar’s value falls, foreign currencies will rise, and all other asset classes are likely to rise as well.
- Gaps are the real supports and resistance.
- Price movements are not caused by buying and selling pressures. They are algorithmically delivered.
- We should avoid trading during high-volatility events like Non-Farm Payroll.
Dollar Index - Weekly Chart
Dollar Index - SMT With EURUSD On Daily Chart
Dollar Index - Hourly Chart
EURUSD - Daily Chart
EURUSD - Hourly Chart
EURUSD - 15-Minute Chart
ES - Highs And Lows Of Previous Three Days
ES - Rebalancing Of Liquidity Void
ES - Real Support And Resistance
ES - Hourly Chart
ES - 15-Minute Chart
ES - SMT On 5-Minute Chart
ES - Long Trade Opportunites On 1-Minute Chart
ES - Trade Entry And Exits
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