Technical analysis
Overbought
An asset is overbought when its price has risen fast and far, to the point a pause or pullback becomes more likely.
An asset is overbought when its price has risen fast and far, to the point a pause or pullback becomes more likely.
Overbought is often spotted with the RSI above 70. Careful: an overbought asset can stay that way for a long time in a strong trend. It is a caution signal, not an automatic sell order.
The RSI tops 75 after a surge: the asset is overbought, a breather is possible.
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