1. Relative Strength Index (RSI) Investing.com reports an RSI of ~43—a reading comfortably within neutral (30–70), suggesting no overbought condition at the moment. General RSI guidelines define overbought above 70, oversold below 30. 2. Stochastic Oscillator & Williams Stochastic is around 98–99, and Williams %R is near –1 to –0.5—both signaling overbought territory Specifically, Williams %R over –20 points implies overbought conditions. 3. Broader Technical SummaryInvesting.com categorizes overall technical signals as "Sell" or "Strong Sell", driven by weak MACD, ADX, moving averages, and other oscillators.
Yes. I posted just recently that every rally was getting weaker than the last. Overbought and oversold are kind of misnomers... What you should be doing is just comparing the relative strength.
What causes price to drop? I think it is beacause someone wants to sell and can't find anyone willing to pay the last price. You might consider that overbought.
Overbought ... Basically it means there is no one left to buy. What if an event occurs and a bunch of new buyers show up ? It's not overbought anymore and price keeps moving higher. There are risks & rewards.
Think of it as what we went thru with Covid initially. Stores were sold out of Toilet Paper and other items. For a while items were overbought. Actually not even then really. Can't buy more than what was on the shelf. But if someone wants to say they were overbought so be it. A stock, future, option, bond can't be overbought if there more still available. If price is overbought but yet still moves higher - is it now over-overbought? If so what is it if it moves higher still? At what point does it get redundant enough to just stop calling it overbought? As for what causes price to drop (or rise) supply and demand fear and greed of course.