Can you explain the whole overbought calculations? I'm still new to trading, so I'm learning.
Does the overbought situation account for the downwards selling pressure for over a year?
Does the overbought situation account for the downwards selling pressure for over a year?
Overbought conditions usually detected using oscillators. The most known oscillator is Relative Strength Index (RSI). It is overbought >70 and oversold <30.
Daily RSI is at 2 years high, almost at 2013 bubble value.
Next one is Slow Stohastic (SS). Same as RSI (70/30).
Next ADX. Overbought or oversold >40 depending on what greater +Dl or -Dl.
All of those are close to 2013 top values.
