Oversold
Price has fallen so far, so fast, that an indicator says sellers may be exhausted.
In plain English
Price has fallen so far, so fast, that an indicator says sellers may be exhausted.
A market is oversold when a momentum gauge says the selling has been unusually fierce: the RSI under 30 is the classic signal.
Like its twin overbought, it only describes how stretched price is. A collapsing market can stay oversold all the way down, so traders wait for price itself to turn before trusting it.
Don’t be that stickman
Buying a crash just because the RSI says oversold, and catching a falling knife.
Keep this word for good
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