An RSI above 70 often signals strong upward momentum, but also warns that buying pressure may be reaching exhaustion.
How to use RSI overbought signals
RSI overbought signals are often used to identify potential pullbacks, especially when combined with resistance levels or extended price action.
The US RSI Overbought Stocks Screener
These are the rules used to build this stock list.
Methodology
This screen focuses purely on RSI as a momentum indicator. Stocks with RSI above 70 are considered overbought and may be due for consolidation or pullback.
Screener Filters
Liquidity Filters
Average Volume above 50K
We require a minimum average daily volume of 50,000 shares to ensure sufficient liquidity for investors.
Market Cap above $300M
We exclude very small companies to avoid illiquid and highly speculative stocks.
technical
RSI above 70
An RSI above 70 indicates strong buying pressure and potential overbought conditions.
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FAQ
What is RSI overbought?
RSI overbought refers to a high Relative Strength Index reading, often above 70, which may indicate strong recent buying pressure. It helps traders identify stocks that could be extended in the short term.
Does RSI overbought mean a stock must fall?
No. Overbought readings can persist during strong uptrends. Many traders combine RSI with trend analysis, price structure, and volume before making a bearish call.
How does the RSI Overbought Stocks screen work?
This screen focuses purely on RSI as a momentum indicator. Stocks with RSI above 70 are considered overbought and may be due for consolidation or pullback.
What should investors look for when using the RSI Overbought Stocks screen?
RSI overbought signals are often used to identify potential pullbacks, especially when combined with resistance levels or extended price action.