How to tell if a stock is overbought or raising it's normal price range?
Stock I am asking about is ALGN, they crushed earnings, and I mean quite literally. Indicators I am only curious about is RSI and MFI (Parameters of 14 for both) . Viewing a weekly chart, RSI is sitting at 81.35, MFI 69.47. Both seemingly showing an uptrend. So the RSI is clearly stating it is overbought, with double its normal volume yesterday, (Friday), I am curious how do you know when a stock is being overbought or is raising its normal price range? Or how do I know if or when there will be a price correction and if based in this data and its earnings report does it seem like a viable choice long term?
Side note: any better parameters to use for short term trends?
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