Spotting divergences and then trading them can make you tons of money. Here we look at yesterdays set up on a 3 minute chart. The market opened and sold off early but the down move was quickly arrested. In the mean time the Stoch showed a nice positive divergence and a signal to go long. Market continued higher but the momentum was dropping - watch the macd. A failed breakout and a shooting star gave early warning of a fall. Price confirmed this by closing below the breakout point and that was a signal to go short.