Overbought-oversold indicator

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Overbought-oversold indicator

An indicator that attempts to define when prices have moved too far and too fast in either direction and thus are vulnerable to reaction.

Overbought-Oversold Indicator

In technical analysis, any indicator showing that a price movement is unsustainable and is likely to reverse itself. For example, a sharp drop or rise may indicate that the price of a security may soon revert to the mean.