A fast rise that leaves the price temporarily expensive and exposed to profit-taking. Sometimes mislabeled as exaggerated buying; the platform's term is Overbought.
What the label means
Overbought (Overbought) is a statistical description, not a value judgment: the latest upward momentum has gone beyond its usual range · for example, as measured by the Relative Strength Index above 65–70. It says “the current push is stretched”. It doesn't say “the stock is expensive” or “it will collapse”.
The famous trap
In strong trends a symbol can stay overbought for weeks while it keeps rising · so overbought in an established uptrend is a sign of strength more than a warning of a top. Selling every overbought reading is the shortest path to colliding with the strongest stocks on their best days.
When it deserves attention
When it lines up with other things: overbought at structural resistance (a huge call wall) with momentum divergence (a new price high on lower momentum) and thin volume. The overlap is the signal · the number alone is noise.
Hypothetical example
A stock jumped 18% in five sessions, its Relative Strength Index is at 82 and it is touching its monthly call wall: the chance of a pause or pullback here is clearly higher than for a stock that is overbought in the middle of open price space.
Common mistake
Treat the threshold as a convention: 70 is a customary number whose meaning changes with the asset and its regime · violent symbols live above it, and calm ones rarely reach it. Set each asset's threshold from its own history.
Why it isn't a sell order
In a strong uptrend the indicator can stay in overbought territory for weeks · and whoever sold at the first touch sold the start of the move. The mature reading: overbought describes the state of momentum, and the decision comes from the regime and the level, not from the threshold alone.
Where to see it on the platform
The stock scanner classifies symbols by relative strength state with heat shading on their cells, and the state filters sort out the overbought ones with one click.
The scanner terminal shows the momentum reading with the market regime, so the threshold is never read in isolation.
