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Market Intelligence › Basic Terminologies

OVERBOUGHT

RSI above 70.

Published by The Retail Trader · JUL 31, 2026 · Indicators

Overbought — RSI above 70. This does not mean it will 'fall' - in a strong trend the RSI can remain above 70 for half a year.

WHERE THIS FITS IN

This term comes under Indicators, in the section "Indicators with Momentum". This tells us how much dum is left in the move:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• RSI (Relative Strength Index)
• Oversold
• Bullish Divergence
• Bearish Divergence
• MACD
• MACD Histogram
• Stochastic
• CCI (Commodity Channel Index)
• Rate of Change (ROC)

To read the entire group and all its examples in one place, see the journal "INDICATORS: FORMULA TOOLS" - this term has been taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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