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Concept
Overbought Condition
An
overbought condition
occurs when an
asset's price
has risen to a level that is considered unsustainable, often signaling a
potential reversal
or pullback. It is typically identified using
technical indicators
like the
Relative Strength Index
(RSI) and suggests that the asset may be overvalued in the short term.
Relevant Fields:
Economic Theory and Concepts 67%
Land Value 33%
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