Bollinger Bands, RSI, and stochastics measure whether stocks are overbought or oversold. If a stock is overbought, this is a short-term signal to sell. If a stock is oversold, it is a signal to buy. The problem is that stocks can remain overbought or oversold for long time periods before reversing. It’s worth your while to study these indicators closely, especially when using short-term trading strategies.
Indicators for overbought and oversold
