Overbought
An occurrence where a market’s prices are unjustifiably high due to extensive demand (buying).
Glossary
OverboughtOversold Indicator
A technical analysis decision support tool that identifies when prices for a financial asset have moved too far and/or too fast in either direction. It is calculated through the use of a moving average applied to the difference between advancing and declining issues.
Overnight Position
Trading positions that are held overnight, remaining open until the next trading day.
Oversold
An occurrence where a market’s price has fallen sharply, where the decline exceeds the level of it’s true value.
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