Overbought

A condition where a security's price has risen too far, too fast relative to its recent trading range, suggesting it may be due for a pullback or consolidation. The Relative Strength Index (RSI) above 70 is the most commonly cited overbought threshold, though experienced traders know that strongly trending stocks can remain overbought for extended periods. Calling a top based solely on an overbought reading is a reliable way to get run over by momentum.