Overbought: End of Day Thursday, 07 March 2024
An overbought rating often overlaps with high bullish momentum however the long-side reward-to-risk can be unappealing. How can traders approach these shares and how can it lead to a trading opportunity?
The bullish price momentum could continue, however traders may want to look for early signs of a slowdown via: (1) poor candle candle structure on the lower (intraday) time frames.
The emergence of a neutral or bearish candle, for example: a ‘doji’, bearish engulfing, long upper tail etc combined with sizeable offers which may signal some institutional selling.
The bullish price momentum could continue, however traders may want to look for early signs of a slowdown via: (1) poor candle candle structure on the lower (intraday) time frames.
The emergence of a neutral or bearish candle, for example: a ‘doji’, bearish engulfing, long upper tail etc combined with sizeable offers which may signal some institutional selling.
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