Overbought
Price has run up so far, so fast, that an indicator says buyers may be running out of breath.
In plain English
Price has run up so far, so fast, that an indicator says buyers may be running out of breath.
A market is overbought when it has climbed hard and fast enough that a momentum gauge, usually the RSI above 70 or the stochastic above 80, flashes a warning.
It's a reading, not a prophecy. In a strong trend price can stay overbought for weeks while it keeps marching higher. Treat it as a reason to look harder, never as a sell button on its own.
Don’t be that stickman
Shorting every overbought reading in a powerful uptrend and getting run over again and again.
Keep this word for good
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