InvestorWords.com Term of the Day The term of the day from InvestorWords.com http://www.investorwords.com Term of the Day for November 20, 2009: overbought/oversold indicator IW logo
overbought/oversold indicator

A technical analysis tool that attempts to define when prices have moved too far and fast in either direction. This is usually calculated based on a moving average of the difference between the number of advancing and declining issues over a certain period of time. If the market is considered overbought, the technical analyst will sell, and if the market is considered oversold, he/she will buy.

Copyright(c) 2009 by WebFinance, Inc. ALL RIGHTS RESERVED. Unauthorized duplication, in whole or in part, is strictly prohibited.]]> IW logo
overbought/oversold indicator

A technical analysis tool that attempts to define when prices have moved too far and fast in either direction. This is usually calculated based on a moving average of the difference between the number of advancing and declining issues over a certain period of time. If the market is considered overbought, the technical analyst will sell, and if the market is considered oversold, he/she will buy.

Copyright(c) 2009 by WebFinance, Inc. ALL RIGHTS RESERVED. Unauthorized duplication, in whole or in part, is strictly prohibited. ]]> http://www.investorwords.com/3542/overboughtoversold_indicator.html http://www.investorwords.com/3542/overboughtoversold_indicator.html November 20, 2009