09 · Lesson summary
SMT divergence
Correlated markets fail to confirm each other’s corresponding swing extreme.
Rules to keep
- Compare NQ and ES at matching swing times on the same timeframe.
- Lesson 12’s bearish example: ES takes a previous high; NQ fails to take its corresponding high.
- Bullish mirror: one takes a prior low while the other does not.
- Use liquidity location, momentum and FVG behaviour to interpret the divergence. In the example, a later hourly FVG failure strengthens the bearish thesis.
- SMT is optional confluence. Missing early SMT does not eliminate a later valid entry model.
From the study library
L12, 2:10–4:35 and 11:25–13:19. Summary-derived; no corresponding handwritten pages in the reviewed PDF.
- L12 · Daily Bias Pt. 2Lesson summarySummary-derived · no handwritten notes