Overbought
The high extreme of an oscillator — conventionally RSI above 70 — indicating an unusually fast recent advance. Mean-reversion traders use it as an exit or a fade signal; momentum traders note that strong trends spend long stretches overbought, which is why 'overbought' alone is a weak short signal.
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Related terms
OversoldA condition where a price has fallen hard and fast enough that an osci…RSI (Relative Strength Index)A momentum oscillator that scores the speed of recent price changes on…
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