- 1. A situation in which the demand for a certain asset unjustifiably pushes the price of an underlying asset to levels that do not support the fundamentals.
2. In technical analysis, this term describes a situation in which the price of a security has risen to such a degree - usually on high volume - that an oscillator has reached its upper bound. This is generally interpreted as a sign that the price of the asset is becoming overvalued and may experience a pullback.
1. An asset that has experienced sharp upward movements over a very short period of time is often deemed to be overbought. Determining the degree in which an asset is overbought is very subjective and can differ between investors.
2. Technicians use indicators such as the relative strength index, the stochastic oscillator or the money flow index to identify securities that are becoming overbought.
An overbought security is the opposite of one that is oversold.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
overbought — A technician s term to describe a market in which the price has risen relatively quickly too quickly to be justified by the underlying fundamental factors. The CENTER ONLINE Futures Glossary Used in the context of general equities. Technically… … Financial and business terms
overbought — 1) Having purchased more of a good than one needs or has orders for. 2) Having purchased more securities or commodities than are covered by margins deposited with a broker or dealer. In a falling market, for example, a bull speculator can become… … Big dictionary of business and management
overbought — /ˌəυvə bɔ:t/ adjective having bought too much ♦ the market is overbought prices on the stock market are too high, because there have been too many people wanting to buy ▪▪▪ ‘…they said the market was overbought when the index was between 860 and… … Dictionary of banking and finance
overbought — adjective Date: 1929 not likely to show an immediate rise in price because of prior heavy buying and accompanying price rises < an overbought market > … New Collegiate Dictionary
overbought — /oh veuhr bawt /, adj. 1. marked by prices considered unjustifiably high because of extensive buying: The stock market is overbought now. Cf. oversold. v. 2. pt. and pp. of overbuy. [1955 60; OVER + BOUGHT] * * * … Universalium
overbought — adjective A stock or commodity market condition where there has been significant trading bidding up prices to higher levels, levels which seem overextended or excessive on a short term basis. Ant: oversold … Wiktionary
OVERBOUGHT — Период, используемый для выражения мнения, что цены повысились слишком высоко и слишком быстро, следовательно будет понижение цен. Дословно рынок перекуплен … Малая энциклопедия трейдера: глоссарий к книге
OVERBOUGHT — перекупленный рынок; возникает после того как цены повысились слишком высоко и быстро и ожидается понижение цен; … Глоссарий финансовых и биржевых терминов
overbought — oÂ·ver buy || â€šÉ™ÊŠvÉ™(r)baÉª v. buy in excessive quantity; buy more than one can afford to pay for … English contemporary dictionary
Overbought — A positive open currency position … International financial encyclopaedia