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Spotting an overextended run

Overextension is the recent unbroken run of up-days, not the size of the climb. Compare real charts and spot the stretched one — the biggest mover is often the one that just paused.

You’ve read direction at every scale. A stock can pass all of those and still be pushed too far, too fast — here’s the tell.

A trend can be perfectly healthy and still be stretched short-term. The gauge isn't how big the climb was — it's the recent unbroken run: how many days straight has the stock closed higher than it opened, with no pause?

The most impressive chart usually isn't the stretched one. A stock can surge for weeks, print one red day, and that pause resets everything — while a quieter chart on a three-day green run is the overextended one.

Three real charts below, in green (up) and red (down) candles. Tap the one you think is overextended — then see which unbroken run actually decides it.

The streak is fragile by design. One close at or below its open — even by a hair — resets the count to zero. That's why the biggest climber can have room to spare while a modest mover is stretched: it's the run into today that counts.

Two green closes in a row is the line. A purely short-term read — it says nothing about the bigger trend, only whether the move has run without a breather.