EOS Soars But Becomes Dangerously Overbought

Over the past two days, EOS EOS/USD has skyrocketed higher. It has gained almost 50%, but it's now overbought and that means the rally could end.

On the following chart, the red line is two standard deviations above the 20-day average price. Probability theory states that 95% of all trading should be within two standard deviations of the average.

This means the computerized trading programs will start to sell EOS. They will be anticipating a reversion, or selloff, back to the average price.

EOS exceeded this threshold in January and February. Both times were good selling opportunities.

After exceeding it in early April, EOS went into a period of sideways trading. But when it traded above it on April 16, it was another good time to sell.