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When two markets have been moving together and only one makes a new high, the disagreement is noticeable. ICT uses SMT divergence for such relative discrepancies. The discrepancy and the later outcome are separate observations.
A positively related pair
In a fictional NQ/ES example, NQ exceeds its prior high while ES does not exceed its own. Compare each market with its own reference rather than subtracting their price levels.
This is a teaching scenario, not a current quote or identified opportunity. A similar comparison can be defined for BTC/ETH without assuming equal results.
Inverse relationships need a different rule
For an inverse relationship such as the one examined between EUR/USD and a dollar index, do not reuse a high-versus-high rule. A new high on one side may instead be compared with a new low on the other. A dollar index contains multiple currencies and is not an exact inverse instrument.
Price-level correlation differs from same-interval return correlation. Assess the relationship over a predefined trailing period; do not select the pair after inspecting outcomes.
Align time and instruments
Match bar intervals, overlapping sessions, data delays, and futures contracts. A closure or contract roll affecting one series can distort the comparison. Preserve both swing times and confirmation times.
Test all qualifying events
Collect every event meeting the rule and compare movement over fixed later horizons. Do not use swings before confirmation. Relationships can change, and a discrepancy can persist or recur during a trend.
Continue with common foundations
Market structure · ICT liquidity · Premium & discount · ICT Killzones
Research methods and reporting standards
For education and research. Numerical examples are teaching assumptions unless explicitly identified otherwise. Historical results do not guarantee future performance.