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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Gib Bogle who wrote (312059)	10/22/2025 5:16:31 PM
From: LoneClone	Read Replies (1) \| Respond to of 312215

Not underbought, but oversold. When you look at a chart of a stock or index or commodity, you will often see underneath that chart smaller ones with chart measure like RSI (Relative strength Index). You will see that when the stock is trending upward, it sometimes gets above 70 and is shown in a darker colour, and when a stock is getting sold off it sometimes drops below 30 and is also displayed in a darker colour. I will leave you to look up the details of how RSI is calculated, but one convention is to say that stock is overbought when the RSI is over 70 and oversold when it is under 30. There are other similar measures, all trying to get at the same thing. (MACD is probably the 2nd most popular indicator for this.) A stock or index or commodity can stay overbought or oversold for extended periods, but, depending whether you are investing or trading, following it can be a useful indicator for when to buy or sell. LC