RSI divergence

Discussion in 'Technical Analysis' started by hoodooman, Jan 18, 2007.

  1. I know that when a stock makes a higher high but the rsi is lower than the rsi at the previous high then this is called a divergence and may signal a short trade.

    But suppose there is a high proceeded by a lower high but the latter rsi is actually higher than the preceding rsi. Is this also considered to be a divergence. And if so does this latter case have any trading significance.