Definition of Overbought
A market condition indicated by technical indicators (typically RSI above 70) suggesting that a currency has been bought too aggressively and may be due for a pullback or reversal.
At a glance
Term
Overbought
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overbought
Category
General
Short answer
A market condition indicated by technical indicators (typically RSI above 70) suggesting that a currency has been bought too aggressively and may be due for a…
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Example
Apply the definition: restate “Overbought” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Overbought” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Overbought” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
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FAQ
A market condition indicated by technical indicators (typically RSI above 70) suggesting that a currency has been bought too aggressively and may be due for a pullback or reversal.
Knowing the precise definition of “Overbought” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Overbought” as loose slang while your broker/platform specification defines it more narrowly.