An overbought market occurs when asset prices rise sharply, often driven by excessive buying, signaling a potential reversal or pullback. Traders use technical indicators like the RSI to identify overbought conditions, helping them decide when to sell or avoid new buys. Investors benefit by timing exits, while short sellers profit from anticipated declines.
Get alerts when this topic surges in newsletters. Free to start.
Sign up freeExplore more trends:Trending Topics ·AI Trends ·Business Trends ·Finance Trends ·Technology Trends