Tag Archives: overbought conditions
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.
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. For access to premium content, you must be … Continue reading
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