SMT Divergence – When Correlated Markets Disagree

SMT Divergence is a technique used to compare related markets.

For example:

If ES makes a new high but NQ fails to make a corresponding new high, traders may observe a bearish SMT divergence.

The opposite may indicate bullish SMT divergence when one market makes a lower low and the other does not.

It can provide useful context, but it is not an independent entry signal.

Do you use SMT divergence between ES and NQ?