Overbought

Overbought

o A situation in which the demand for certain assets is unjustifiably pushes the price of the underlying asset at a level that does not support bases.
o 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.
o This is interpreted as a sign that the cost of funds is becoming overvalued and may experience withdrawal
o asset that has experienced a sharp upward movements over a very short period of time, often considered overbought
o Determine the extent to which an asset is overbought is very subjective and can vary among investors.
o The security is overbought opposite to that which is oversold.