Overbought-oversold indicator(redirected from 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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
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