ETF Trend/Pattern Grouping – Overextended get More So, Flag Breakouts, Pennants, Falling Wedges and Bollinger Band Squeezes
Overextended its an incredibly nebulous term. Many ETFs were considered overextended last week and simply became even more so as strong buying pressure persisted. This is a classic case of becoming overbought and remaining overbought because the uptrend is strong. These ETFs, which are in the first few groups, are in the trend-monitoring phase.