WickCheck / Trading school / SMT divergence
SMT divergenceSMTAdvanced
When two related markets disagree: one makes a new high (or low) and the other does not.
What it means
Example: ES makes a higher high but NQ makes a lower high. ICT traders read the failure to confirm as a sign of weakness. It needs two charts, which makes it harder to test.
How to spot it
- Compare the same swings on two correlated markets (ES and NQ, EURUSD and GBPUSD).
Common mistakes
- Comparing markets that are not actually correlated.
Related terms
Higher-timeframe biasThe expected direction from a bigger timeframe (4h, daily, weekly), used to deci…Liquidity sweepPrice trades beyond a high or low, triggers the stops there, and closes back ins…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.