Sequential SMT (QT)

Sequential SMT (Quarterly Theory)

Price Divergences Between Correlated Asset Pairs Across Time Quarters

This indicator identifies Sequential SMT patterns - divergences between correlated assets across consecutive time periods. When price action diverges between traditionally correlated pairs, it may signal potential reversals or distribution phases.

How It Works
The indicator divides the trading day into specific time quarters and analyzes price extremes within each period. It compares consecutive quarters to detect divergences:

• Bullish Pattern: One asset makes a lower low while its correlated pair makes a higher/equal low
  
• Bearish Pattern: One asset makes a higher high while its correlated pair makes a lower/equal high
  

This implementation enhances standard divergence detection by:

• Analyzing multiple timeframe cycles simultaneously (dual-cycle approach)
  
• Using both wick and body-based analysis for hidden divergences
  
• Incorporating True Open levels as confluence filters
  
• Providing visual quarter/cycle boundaries for context
  

Key Features

Dual-Cycle Detection

• M5 Timeframe: Tracks Daily Cycles (6h) AND 90-minute quarters simultaneously
  
• M1 Timeframe: Tracks 90-minute cycles AND 22.5-minute quarters simultaneously
  
• Both cycle types run concurrently for multiple confluence levels
  

Divergence Analysis

• Standard Patterns: Identifies divergences using full candle ranges
  
• Hidden Patterns: Body-only analysis for concealed divergence detection
  

5 Configurable Correlation Pairs
Pre-configured with major correlations:

• BTC/ETH (Cryptocurrency pairs)
  
• NQ/ES (Index futures)
  
• EUR/GBP (Forex majors)
  
• Gold/Silver (Precious metals)
  
• Custom pair slot
  

Visual Components

• Quarter Boxes: Color-coded Q1-Q4 periods showing price ranges
  
• Cycle Frames: Larger timeframe boundaries for context
  
• SSMT Lines: Connect divergence points between quarters
  
• True Opens: TDO (daily) and TSO (session) reference levels
  
• Dual Labels: Period identification for each timeframe
  

Trading Application
This indicator is designed to identify divergence patterns that may precede reversals:

• Signals are strongest when divergences occur near True Open levels
  
• Multiple timeframe confluence increases signal reliability
  
• Best used in conjunction with other technical analysis methods
  

The indicator is particularly useful for traders who:

• Trade correlated asset pairs
  
• Focus on intraday reversals
  
• Use time-based market structure analysis
  
• Combine multiple confluence factors for entries
  

Customization
Toggle individual components, adjust colors, control visual density. Configure correlation pairs to match your trading instruments. Debug panel available for detailed analysis.

Important Note
This indicator identifies divergence patterns based on mathematical relationships between correlated assets. Like all technical indicators, it should be used as part of a comprehensive trading approach with proper risk management.

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Based on time-quarter analysis and correlation divergence concepts. Designed to help identify potential reversal zones through systematic divergence detection across multiple time cycles.