There are several indicators that can be used to determine if stocks are overbought or oversold. The two I like to use are the Commodity Channel Index (CCI) and the Bollinger Bands (BB), both set to a 20 period. I also like to look at the stock being three standard deviations away on the BB
Overbought and Oversold Signals
There are several indicators that can be used to determine if stocks are overbought or oversold. The two I like to use are the Commodity Channel Index (CCI) and the Bollinger Bands (BB), both set to a 20 period. I also like to look at the stock being three standard deviations away on the BB