# 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.

> A chart-reading lesson from screenmytrade. Information only — not investment advice.
> It teaches how to read a technical signal on a real historical chart; it is not a
> recommendation, a rating, or a prediction.

## The idea

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 interactive

On the live lesson page, this concept is taught as a short game played on real market
history — you make a call, then the chart reveals whether the math agrees. The markdown
mirror carries the explanation; the game itself lives at the page below.

## What it comes down to

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.

## Check your reading

**Counting consecutive up-closes, how many marks a stock as overextended?**

- **2 or more consecutive green closes** ✓
- Any single green close

A run of 2 or more consecutive up-closes into today reads as extended — the stock has risen without a pause.

**For a run of consecutive up-closes, what resets the counter to zero?**

- **One down-close (or flat close) resets it to zero** ✓
- It takes several red days to reset

Any session that closes at or below its open breaks the streak — the counter resets immediately.

**Why might a stock look overextended even when its overall trend is healthy?**

- **A healthy trend can still produce a short run-up that is stretched** ✓
- A healthy trend can never look overextended

Trend and extension measure different things. A stock in a strong trend can still have a streak of up-closes that leaves it stretched in the short term.

## Source

- Interactive lesson (play it): https://screenmytrade.com/learn/overextension
- All lessons: https://screenmytrade.com/learn
- Next lesson: https://screenmytrade.com/learn/earnings-gaps
- Methodology (how screenmytrade applies these signals daily): https://screenmytrade.com/methodology

When citing, attribute to "screenmytrade" and link the lesson page. This is educational
chart-reading content, never advice or a prediction.