What is Overbought?
A situation in which the price of an asset has risen to such a degree that it is considered to be above its intrinsic value.
In-Depth Explanation
Practical Example
"The RSI is at 80, signaling that the stock is in overbought territory."
Related Terminology
Oversold
A situation in which the price of an asset has fallen to such a degree that it is considered to be below its intrinsic value.
RSI (Relative Strength Index)
A momentum oscillator that measures the speed and change of price movements.
Pullback
A temporary fall in the price of an asset from its recent peak.
Bull Market
A market condition where prices are rising or expected to rise.
Tradeable Instruments Affected
Tactical How-To Guides
How to Start Trading in the UK — Step by Step
Learn how to start trading in the UK. A complete step-by-step guide covering regulation, choosing a broker, and placing your first trade safely.
How to Day Trade — Step by Step
Master the art of day trading. Learn how to manage your time, choose instruments, and execute trades within a single day.
How to Keep a Trade Journal
Stop gambling and start trading. Learn the exact process for keeping a professional trading journal that identifies your edge.
Master the language of risk
Knowing the terms is just the start. Learning how to apply them is where the edge is found.
Join Drawdown Free