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Overbought

Revision as of 17:49, 1 September 2009 by Ian.Jones (Talk | contribs)

A market is said to be overbought when prices rise more than they should according to fundamental factors and according to technical analysis. The market may then be liable to a downward correction. In technical analysis a security is said to be overbought when its relative strength index registers more than 70 per cent. The opposite of oversold.

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