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description: SmartRSI Overbought Condition Overview | Invader Inc.
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# Overbought

When SmartRSI reaches the red area, this indicates that the asset has entered 'overbought' territory. Once SmartRSI exits the red zone, this signals that there is a high likelihood of a price correction.

![](https://93303071-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMmdAZelzgB38fEbnzRdG%2Fuploads%2FQEBzv5qhCL87tbdR6v2v%2Fimage.png?alt=media\&token=540bcb69-53bb-497c-90ea-501bb38c2308)![](https://93303071-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMmdAZelzgB38fEbnzRdG%2Fuploads%2FgCzoTENciS3qq57sJRmJ%2Fimage.png?alt=media\&token=bd25b511-f597-4b08-959b-9ed8805c6677)

Readings above 70 indicates that the asset is potentially overbought, and that the uptrend may be weakening. SmartRSI can remain in the overbought zone for extended periods, so traders shouldn't always view it as an automatic sell signal.&#x20;

Opening a long position when SmartRSI is in overbought territory (>70) can be risky since it's betting against the prevailing momentum and potentially buying at the top of a rally. It's often safer to consider short positions when in this area.&#x20;
