#MarketPullback Overbought is often used in technical analysis, especially with indicators like the Relative Strength Index (RSI) or the Stochastic Indicator.
Overbought: means that the price has risen rapidly and excessively, and there is a high probability that it will start to decline (correction or reversal).
Oversold: means that the price has fallen rapidly and excessively, and there is a high probability that it will start to rise (bounce or reversal).
📌 Example:
If the RSI is above 70 → the market is said to be overbought.
If the RSI is below 30 → the market is oversold.