Overbought means that the market has run out of buyers, (versus Oversold, where the market is deemed to have run out of sellers.)
Usually these terms are interpreted as meaning that the the market has reached an extreme limit in one direction or the other, and that a retracement or consolidation is likely to take place.
Started by Guru Dudette , Jan 31 2007 11:24 AM
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Posted 31 January 2007 - 11:24 AM
"I'd rather be vaguely right than precisely wrong." J.M.Keynes
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