Overbought

An objective term used by technical analysts and investors that refers to a security which has experienced appreciation in price and is expected to correct or level off.
Some investors use indicators that notify them when a stock is overbought. For example, when the RSI for a stock is above 70, it is considered to be overbought.

Overbought is a very objective and overused term. Many times when an investor believes a stock is overbought, it continues to rise due to momentum and other reasons. Investor caveat.

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