🧠 Correlated assets usually move in tandem, but sometimes they diverge. This is called SMT divergence.

🤥 One asset hits a new high, while the other fails to do so. This means momentum is waning and a reversal is looming.

A bullish SMT occurs when one asset slides to a new low while the other does not. A bearish SMT is the opposite.

Look for correlated indices or currencies. Read our article on the LiteFinance blog to better understand SMT divergence.

🗺 Without an understanding of market structure, a trader is like a sailor without a compass, drifting aimlessly in a sea of ever-changing conditions.

📊 The money market, the capital market, and the foreign exchange and commodities segments are all interconnected. The primary market issues assets, while the secondary market provides liquidity. Banks, brokers, market makers, and regulators—each plays its own role.

Understanding market structure reduces risks and opens up opportunities. With the new article on the LiteFinance platform, you'll master all the ins and outs of market structure.

🧠 Use Ashby's Law of Requisite Variety: your strategy's complexity should match the complexity of the market.

⚙️ A toolbox containing only moving averages will quickly reach its practical limits in a sideways market. The market is a complex system that requires a similarly diverse approach, including trend modeling, signal filtering, and context analysis.

With LiteFinance, you have access to a full suite of tools, analytics, and multi-asset trading options designed to help you keep pace with the market.