overbought/oversold indicator
A technical analysis tool that attempts to define when prices have moved too far and fast in either direction. This is usually calculated based on a moving average of the difference between the number of advancing and declining issues over a certain period of time. If the market is considered overbought, the technical analyst will sell, and if the market is considered oversold, he/she will buy.
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overbought/oversold indicator is ...
... part of the Technical Analysis subject.
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