Understand before you act
Overbought, explained
Recent gains are strong relative to recent losses. Momentum may be stretched, but an uptrend can keep going.
How Index Screener uses it
RSI (14)
The daily RSI (14) is strictly above 70. A reading of exactly 70 does not activate this badge.
What it helps you assess
Notice strong momentum and review the risk of chasing a fast rise.
What it cannot tell you
Overbought describes momentum, not expensive valuation. It does not establish a market top.
Before an entry or exit
These are learning examples to build your own checklist. They are not tested trading rules or personalized recommendations.
Look for confirmation
A patient entry example is to wait for a pullback that holds support, then check whether the trend resumes. Avoid entering only because momentum is high.
Follow your risk plan
For an existing position, review your planned stop and target. RSI falling below 70 together with a break of support may justify a review; the badge alone is not an exit rule.
Keep learning
Further reading
References explain the indicators. Site rules and the example checklists above are described by Index Screener.