Overbought & oversold
"Overbought" and "oversold" describe a stock whose price has moved up or down unusually fast recently — most commonly measured with a 14-day RSI above 70 or below 30.
A stock is called "overbought" when its recent price rise has been rapid enough that momentum looks extended, and "oversold" when a sharp drop makes selling pressure look stretched. The most common yardstick is the 14-day RSI: above 70 is the overbought zone, below 30 the oversold zone.
These labels are frequently misread as timing signals. They are not. An overbought stock in a strong uptrend can keep climbing for weeks, and an oversold stock can keep falling if the business is genuinely deteriorating. They describe the speed of a recent move, not its future direction.
stocks-llm surfaces overbought and oversold stocks from the nightly 14-day RSI. This is educational context on past price behavior — informational only, not advice.
See more terms in the stocks-llm glossary.
Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.