EASY H1 trading using divergence and candle sticks

EASY H1 trading using divergence and candle sticks
by pureprice 

For short setup:
1- We look for the price to form a pinbar or bearish englufing candle stick pattern.
2- We now look at RSI(7) of the price close to see if there is divergence between it and the price. i.e the price has made a higher high but the RSI either stayed level or made a lower high.
3- Look to see that the RSI has gone above the 70 level where the first point of divergence is drawn.
4- now, zoom out a bit and look to see the level where all this is occuring. Is it around a round number, or previous support/resistance level? Is it at a fib ratio? This gives us more confidence in the trade, but it doesnot have to be present.

For Long setup:
1- We look for the price to form a hammer or bullish englufing candle stick pattern.
2- We now look at RSI(7) of the price close to see if there is divergence between it and the price. i.e the price has made a lower low but the RSI either stayed level or made a higher low.
3- Look to see that the RSI has gone below the 30 level where the first point of divergence is drawn.
4- now, zoom out a bit and look to see the level where all this is occuring. Is it around a round number, or previous support/resistance level? Is it at a fib ratio? This gives us more confidence in the trade, but it doesnot have to be present.