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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved