Share this entry

Share this page

overbought

Line breaks: over|bought
Pronunciation: /əʊvəˈbɔːt
 
/

Definition of overbought in English:

past and past participle of overbuy.

adjective

Back to top  
Stock Exchange Overvalued owing to excessive buying at unjustifiably high prices.
Example sentences
  • Many traders use them primarily to determine overbought and oversold levels, selling when price touches the upper Bollinger band and buying when it hits the lower Bollinger band.
  • First off, the 20-day price channels on top of the price action allow you to follow the overbought and oversold positions of this chart.
  • In the early stages of a new trend, these indicators can stay in the overbought part of the scale for a very long time, particularly at the start of a new bull market.

Definition of overbought in:

Share this entry

Share this page

 

What do you find interesting about this word or phrase?

Comments that don't adhere to our Community Guidelines may be moderated or removed.

Get more from Oxford Dictionaries

Subscribe to remove adverts and access premium resources

Word of the day tenebrous
Pronunciation: ˈtɛnɪbrəs
adjective
dark; shadowy or obscure