OVERBOUGHT Meaning and
Definition
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Overbought is a financial term used to describe the condition of a particular asset or security when its price has risen significantly and rapidly, usually due to a surge in demand or speculative buying, to a level that is considered excessively high and unsustainable. This term is commonly associated with technical analysis in the stock market and other financial markets.
When a stock or other financial instrument becomes overbought, it means that the buying pressure has pushed its price to an extreme, leaving little room for further upward movement. It is often an indication that the asset may be overvalued and due for a price correction or reversal. Overbought conditions are typically identified using technical indicators such as the relative strength index (RSI) or stochastic oscillator.
Investors and traders pay close attention to overbought signals as it indicates a potential opportunity to sell or take profits, anticipating a subsequent decline in price. It is important to note that overbought does not necessarily imply an immediate and drastic downward movement, but rather suggests that the likelihood of such a move has increased.
Overall, the term overbought serves as a warning for market participants to exercise caution and consider taking appropriate action to manage their positions, especially if they have a short-term investment horizon or are engaged in active trading strategies.
Common Misspellings for OVERBOUGHT
Etymology of OVERBOUGHT
The word "overbought" is a compound formed from two separate words: "over" and "bought".
The term "over" comes from Middle English "over" or "ouer", which is derived from Old English "ofer". It can be traced back to the Proto-Germanic word "uber" meaning "over" or "beyond".
The word "bought" comes from the Middle English word "boughte" or "boght", which is derived from the Old English word "bycgan" meaning "to buy". This Old English word is related to the Old Norse word "kaupa" and the Gothic word "kaupon", both meaning "to buy".
When these two words are combined, "overbought" refers to a situation in the financial market where a particular asset or security has been purchased to an excessive or higher than usual extent.
Conjugate verb Overbought
CONDITIONAL
I
would overbought
you
would overbought
he/she/it
would overbought
we
would overbought
they
would overbought
CONDITIONAL CONTINUOUS
I
would be overbuying
you
would be overbuying
he/she/it
would be overbuying
we
would be overbuying
they
would be overbuying
CONDITIONAL PERFECT
I
would have overbought
you
would have overbought
he/she/it
would have overbought
we
would have overbought
they
would have overbought
CONDITIONAL PERFECT CONTINUOUS
I
would have been overbuying
you
would have been overbuying
he/she/it
would have been overbuying
we
would have been overbuying
they
would have been overbuying
FUTURE
I
will overbuy
you
will overbuy
he/she/it
will overbuy
we
will overbuy
they
will overbuy
FUTURE CONTINUOUS
I
will be overbuying
you
will be overbuying
he/she/it
will be overbuying
we
will be overbuying
they
will be overbuying
FUTURE PERFECT
I
will have overbought
you
will have overbought
he/she/it
will have overbought
we
will have overbought
they
will have overbought
FUTURE PERFECT CONTINUOUS
I
will have been overbuying
you
will have been overbuying
he/she/it
will have been overbuying
we
will have been overbuying
they
will have been overbuying
IMPERATIVE
you
overbuy
we
let´s overbuy
to overbuy
PAST
I
overbought
you
overbought
he/she/it
overbought
we
overbought
they
overbought
PAST CONTINUOUS
I
was overbuying
you
were overbuying
he/she/it
was overbuying
we
were overbuying
they
were overbuying
PAST PARTICIPLE
overbought
PAST PERFECT
I
had overbought
you
had overbought
he/she/it
had overbought
we
had overbought
they
had overbought
PAST PERFECT CONTINUOUS
I
had been overbuying
you
had been overbuying
he/she/it
had been overbuying
we
had been overbuying
they
had been overbuying
PRESENT
I
overbuy
you
overbuy
he/she/it
overbuys
we
overbuy
they
overbuy
PRESENT CONTINUOUS
I
am overbuying
you
are overbuying
he/she/it
is overbuying
we
are overbuying
they
are overbuying
PRESENT PARTICIPLE
overbuying
PRESENT PERFECT
I
have overbought
you
have overbought
he/she/it
has overbought
we
have overbought
they
have overbought
PRESENT PERFECT CONTINUOUS
I
have been overbuying
you
have been overbuying
he/she/it
has been overbuying
we
have been overbuying
they
have been overbuying
