Investor Glossary-overbought/oversold indicatorInvestor Glossary-overbought/oversold indicatorInvestor Glossary-overbought/oversold indicatorInvestor Glossary-overbought/oversold indicatorInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Overbought/oversold Indicator

The HTML to link to this page
 

An overbought/oversold indicator is a type of indicator which seeks to determine when equity or commodity prices have moved too fast and too far in either direction. An overbought/oversold indicator can be applied to a single issue, a defined group, or to an entire market. An overbought/oversold indicator is a technical analysis tool. Typically when an overbought/oversold indicator signals that a stock has risen too fast (i.e. overbought) this is considered an indication to sell, and when an overbought/oversold indicator signals that a stock has dropped too much in price (i.e. oversold) this is then the time to buy. As with any analysis tool, an overbought/oversold indicator often provides the best results when used in conjunction with additional indicators. A few examples of an overbought/oversold indicator would be MACD, RSI, and stochastics.



Rate this overbought/oversold indicator definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: 144a, debt service coverage, Zero Cost Collar, per diem, FICO score, class C shares, in escrow, EBITDA, 401a, command economy, deferred revenue, current ratio, reverse mortgage, wholly-owned subsidiary, phantom income, dividends payable, annual return, stock split, balance sheet, APR, required rate of return, VIX, labor relations, LIBOR, FTSE, stock market close, 1035 exchange, real GDP, cancelled check, covered put, liquidity ratio, Key Rate Duration, diluted share, limit order, quality assurance, ex-dividend date, inflation, ex-dividend, average price per share, retained earnings, risk management, option premium, irrevocable trust, implied volatility, 1031 exchange, open position, margin rate, minority interest, deferred tax


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use