Tag Archives: overbought conditions

“Dow is Overbought” Is More Bullish Than Bearish

The Dow Jones Industrial Average has been in overbought territory since the first trading day of this month and for a total of 10 days, according to a popular technical analysis indicator. But usually overbought conditions occur along uptrends.

Posted in Technical Analysis | Tagged , , , | Leave a comment

An Example Of How Technical Analysis Has Misled Traders

Technical analysis has been a major cause of trader failures along with account undercapitalization. Here we show briefly how untested technical analysis claims about overbought/overbought conditions have misled traders into unprofitable trading.

Posted in Technical Analysis | Tagged , , , , | Leave a comment

Overbought Stock Market Conditions Are Not as Persistent as in Past

After reading recent articles in financial and social media, one may get the impression that prolonged overbought conditions in the stock market are a recent phenomenon, usually attributed to central bank manipulation and herd behavior. These are false impressions according to … Continue reading

Posted in Market Statistics | Tagged , , , | Leave a comment