// TRADING TERMINOLOGY

What is Oversold?

A situation in which the price of an asset has fallen to such a degree that it is considered to be below its intrinsic value.

In-Depth Explanation

Oversold levels are often used as a signal that the current downtrend may be exhausted and a bounce or reversal is likely.

"The price has dropped for 10 consecutive days and the RSI is at 20, suggesting it is oversold."

A situation in which the price of an asset has risen to such a degree that it is considered to be above its intrinsic value.

A momentum oscillator that measures the speed and change of price movements.

A market condition where prices are rising or expected to rise.

A market condition where prices are falling or expected to fall.

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