Overbought
What does this mean?
What you lookin 'overbought?
1st Situation where the demand for certain assets unfounded pushes prices of underlying assets at a level that does not support bases.
2nd In technical analysis, this term describes a situation in which the high costs of security rise to such a degree - usually on high volume - it's oscillator has reached its upper limit. This is interpreted as a sign that the cost of funds is becoming overvalued and may have a withdrawal.
overbought
1st Material that has experienced a sharp upward movements over a very short period of time, often considered overbought. Determining the extent to which an asset is overbought is very subjective and can vary among investors.
2nd Technicians used indicators such as relative strength index of the stochastic oscillator or the money flow index to identify securities, which become overbought.
An overbought security is opposite to that which is oversold.
Saturday, March 19, 2011
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