Glossary/
Technical

Overbought / Oversold

Definition

Conditions where an asset's price has risen (overbought) or fallen (oversold) significantly and may be due for a reversal. Typically measured by RSI or stochastic oscillators.

Example

RSI above 70 is considered overbought; RSI below 30 is considered oversold.

How Gilito AI Uses It

Overbought/oversold conditions from RSI and other oscillators are common entry triggers in mean-reversion strategies tested by Gilito.

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