A stretch reading combining RSI, Stochastic and Williams %R. Overbought means the recent rise is unusually fast — not that the stock must fall; oversold is the mirror.
How to read it
Treat overbought in an uptrend as 'late to enter', not 'time to short'. Oversold in a downtrend is 'falling knife', not 'cheap'.
Related terms
See it on a chart (Overview)All terms
Definitions describe how Easy Sahm computes and reads each figure. Analysis, not financial advice.