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Overbought indicator

Stock market Over-boughtOverbought Oversold

The Upside/Downside Ratio is an effective oversold/overbought indicator. Very low values are likely to demonstrate that the market is becoming oversold.

 


Characterized by sharp price ascent, increased trading volume and gaps in prices between trading sessions. Often interpreted as an overbought indicator.

Analysts consider that a Money Flow Index reading of under 20 in the indicates that the stock or shares are oversold, and represents a possible buying opportunity. Conversely, a MFI value of over 80 is considered to be an overbought indicator, ...

See also: Overbought, Analysis, Stock, Technical Analysis, Indicator