overbought
/ˌoʊvərˈbɔːt/
describes a security that has risen sharply and may be due for a price correction
overbought in a sentence
“With an RSI of 85, the stock was deeply overbought after a three-week rally.”
Origin of overbought
Over + bought — having purchased more than the fair value warrants
Related Words
volume
the total number of shares or contracts traded for a security during a given period
support level
a price point where buying interest is strong enough to prevent further decline
resistance level
a price point where selling pressure is strong enough to prevent further advance
moving average
a calculation that smooths price data by creating a constantly updated average price over a defined period
candlestick
a chart element showing the open, close, high, and low prices for a period, resembling a candle
breakout
when a price moves above a resistance level or below a support level with increased volume