What is overbought?Overbought
An indicator reading near the top, meaning price has risen a lot recently, though it won't necessarily fall right away.
Learn “overbought” in an animated lesson
- Oscillators & MomentumRelative Strength Index (RSI)
Compare the average gain and average loss over the last 14 candles and squeeze it into a 0–100 reading: what share of the force is pushing up.
- Oscillators & MomentumRSI in Trends: The Range Shifts
In uptrends RSI tends to swing between 40 and 80, in downtrends between 20 and 60. Identify the trend first, then decide where your overbought and oversold lines go.
- Oscillators & MomentumStochastic Oscillator (KD / KDJ)
Where does the close sit within the recent range? The K and D lines swing back and forth between 0 and 100.
- Volume & Volatility IndicatorsMoney Flow Index (MFI)
An RSI with volume: also 0–100, overbought above 80 and oversold below 20.
Related terms
See how “overbought” works for yourself with an animation you can drag and play.
Go to “Relative Strength Index (RSI)”