SMT Divergence & ICT KillzonesOverview
This open-source indicator combines SMT-style divergence detection, ICT killzone context, and a Midnight Open reference on a single chart. It is intended for users who want to review correlation-based divergence conditions together with fixed New York session timing and a daily reference level in one workflow.
Why this script was created
This script was created to reduce the need to switch between separate tools for SMT comparison, session timing, and daily reference levels. Instead of checking these elements one by one, the indicator keeps them on the same chart so they can be reviewed together.
How it works
The script compares confirmed swing highs and lows on the chart symbol with those of a user-selected comparison symbol. When one market confirms a new swing extension while the comparison market does not confirm a similar extension, the script marks an SMT-style divergence condition.
In addition to the divergence logic, the script highlights London and New York killzone windows using fixed New York session timing and plots Midnight Open as a daily reference line.
Signals are based on confirmed pivots, so they appear after confirmation rather than on the exact turning bar.
How to use it
Choose a comparison symbol that has a meaningful relationship with the chart symbol. For example, users may compare BTCUSDT with ETHUSDT, or use other markets that are commonly reviewed together.
A practical way to use the script is to review SMT signals together with the killzone background and the Midnight Open level rather than treating the signal marker by itself as a complete trade decision.
Standard candlestick charts are recommended for visual consistency.
Inputs
Correlation Symbol — Selects the market used for SMT comparison. The most useful results usually come from symbols with a meaningful relationship to the chart symbol.
Timeframe — Sets the timeframe used for the comparison symbol. If left empty, the chart timeframe is used. Using a different timeframe changes how often comparison pivots update and can change the timing of divergence markings.
Swing Length — Controls pivot confirmation sensitivity. Higher values require more bars to confirm a pivot, which usually produces fewer signals and more delay. Lower values react faster but can produce more frequent signals.
Show Killzone Background — Shows or hides the London and New York killzone background.
Show Midnight Open — Shows or hides the Midnight Open reference line.
Display Timezone — Controls the display-related timezone behavior used where applicable. Killzone calculations remain aligned to New York session timing.
Bearish / Bullish Color — Sets the visual colors of bearish and bullish SMT markings.
Outside Killzone Transparency — Reduces the visual emphasis of signals that form outside killzone windows. Increasing this value makes off-session signals less visually prominent.
Max Historical Objects — Limits how many historical SMT drawings remain on the chart at the same time. Lower values keep the chart cleaner, while higher values preserve more historical context.
How changing the settings affects the output
Increasing Swing Length makes pivot confirmation stricter. This usually reduces the number of signals, but it also delays them further.
Lowering Swing Length makes the script react faster, but it can also increase the number of marked conditions.
Changing the Correlation Symbol changes the relationship being evaluated. Closely related markets are usually easier to interpret than unrelated ones.
Changing the Timeframe for the comparison symbol changes the pace at which comparison pivots form, which can materially change when divergence conditions appear.
Increasing Outside Killzone Transparency makes off-session signals less visually prominent.
Reducing Max Historical Objects removes older drawings sooner and keeps the chart cleaner.
Use context
This script is most useful when the chart symbol and comparison symbol have a meaningful relationship and when session timing matters in the user’s workflow. It is designed to help users review divergence conditions together with session context and a daily reference level, rather than isolate them as separate tools.
Limitations
The usefulness of the output depends heavily on the chosen comparison symbol. Weakly related or unrelated symbols can reduce the value of SMT readings.
Because the logic uses confirmed pivots, signals appear after confirmation rather than on the exact turning bar.
In sideways or choppy conditions, divergence readings can become less informative.
Heikin Ashi, Renko, Line Break, Kagi, Point & Figure, and Range charts can produce less reliable visual interpretation because they do not use standard price construction.
Design notes
This script combines confirmed SMT-style comparison logic, fixed ICT killzone timing tied to New York session hours, and a Midnight Open reference in one workflow.
It also manages historical lines and labels so the chart does not keep accumulating drawings without limit, which helps keep the visual layout more controlled over time.
Индикатор Pine Script®
