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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. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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