   
|
|
|
|
Overbought/oversold Indicator
|
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...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close
|
|
|
|
