Glossary › oversold

Trading glossary · indicators

oversold

When price has fallen so hard and fast lately that the drop may need a rest.

The fuller meaning

An oscillator reading suggesting recent losses are stretched: RSI below 30 or the stochastic below 20. It describes the recent push, not a buy signal; in strong downtrends readings can stay oversold for a long time, so traders wait for a turn in price or the oscillator.

oversold.

Related words

61.8% level · ATR · ATR expansion · bearish divergence · Bollinger Bands · bullish divergence · crossover · %D · death cross · divergence