Overbought is a subjective term that refers to an asset that has recently traded at a higher price than its perceived intrinsic or fair value and is expected to fall in price in the near term. However, an overbought price condition can last for a long time, implying that a price decrease in the short term is not always the result. Technical indicators are one of the most common methods for identifying oversold or overbought assets by combining data from various metrics such as the relative strength index (RSI), Bollinger Bands, trading volume, and others.