Overbought - Overbought Stock

Overbought is the condition in which a stock is extended to the upside following an uptrend, and is due for some consolidation or retracement.  Overbought readings may be found by using oscillators, or simply by seeing that a stock has moved too far up in too short of time.  An overbought stock has made a price advance at an unsustainable rate.

Overbought is the opposite of oversold.

Return to the main trading terms page to learn more.

The Stock Bandit, Inc. - 17460 IH-35 N. #160, PMB 240 - Schertz, TX 78154
Copyright 2004 -2008 The Stock Bandit, Inc. All Rights Reserved