Stock of the Day: Do Overbought Conditions Mean Builders FirstSource Is About To Reverse?
Stock of the Day: Do Overbought Conditions Mean Builders FirstSource Is About To Reverse?
Momentum refers to how far a stock's price has moved in a given time. For the most part, stocks stay within their average or typical range. If the price exceeds this range, the stock is considered to be overbought.
动量是指股票价格在给定时间内走了多远。在大多数情况下，股票保持在平均或典型区间内。如果价格超过此区间，则该股票被视为超买。
Three popular momentum indicators on the following chart show that shares of Builders FirstSource, Inc. (NYSE:BLDR) are overbought. This is why it's our Stock of the Day.
下图中的三个热门动量指标显示，Builders FirstSource, Inc.（纽约证券交易所代码：BLDR）的股票已超买。这就是为什么它是我们的每日股票。
It's important to know when a stock is overbought. These stocks tend to reverse and move lower.
重要的是要知道股票何时被超买。这些股票往往会反转并走低。
But traders need to exercise caution. There are dozens if not hundreds of tools that are used to measure momentum. These are called momentum indicators and are different ways of measuring the same thing.
但是交易者需要谨慎行事。有数十种甚至数百种工具用于测量动量。这些被称为动量指标，是衡量同一事物的不同方式。
Many successful traders use a limited number of these indicators. They get comfortable with just three or four and master them.
许多成功的交易者使用数量有限的这些指标。他们只需要三到四个，就能熟练掌握它们。
Many newer traders think more is better. They look at too many indicators and end up confused and overwhelmed with information.
许多新交易者认为越多越好。他们看的指标太多了，最后会感到困惑，信息不堪重负。
In the following chart, there are three indicators that all show Builders FirstSource to be overbought.
在下图中，有三个指标都显示Builders FirstSource处于超买状态。
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The red line on the price chart is a Bollinger Band. It is two standard deviations above the 20-day moving average. Statistics and probability theory suggest that 95% of all trading should be within two standard deviations of the mean.
价格图表上的红线是布林带。它比20天移动平均线高出两个标准差。统计和概率论表明，所有交易的95％应在平均值的两个标准差以内。
If the price exceeds this threshold, like it has, the stock is considered overbought. This could draw sellers into the market.
如果价格像以前一样超过这个门槛，则该股票被视为超买。这可能会吸引卖家进入市场。
On the bottom half of the chart, the indicator on the top is the Relative Strength Index (RSI). When the blue line exceeds the horizontal red line, it indicates overbought conditions. As you can see, that is the case now.
在图表的下半部分，顶部的指标是相对强度指数（RSI）。当蓝线超过水平红线时，表示超买情况。如你所见，现在就是这样。
The bottom part of the lower half of the chart is the Commodity Channel Index (CCI). This is another simple yet effective indicator. It too indicates overbought conditions.
图表下半部分的底部是商品渠道指数（CCI）。这是另一个简单而有效的指标。这也表明存在超买情况。
Many trading strategies and based on the concept of reversion to the mean. If a stock is overbought it will draw sellers into the market.
许多交易策略，都基于回归均值的概念。如果股票被超买，它将吸引卖家进入市场。
They will be expecting a reversal or move lower and selling could cause it to happen. This could be the case with shares of Builders FirstSource.
他们预计会出现逆转或走低，而卖出可能会导致这种情况发生。Builders FirstSource的股票可能就是这种情况。
Photo: Shutterstock
照片：Shutterstock