Oversold

Oversold describes a situation in which the price of a stock has fallen to such a degree, usually on high volume, that an oscillator has reached its lower bound.

Oversold

Oversold describes a situation in which the price of a stock has fallen to such a degree, usually on high volume, that an oscillator has reached its lower bound.

 


Application of Oversold

Oscillators are generally used to detect oversold situations. Oversold is generally interpreted as a sign that the stock is becoming undervalued and may experience a price rise. This indicator is typically used in conjunction with other signals.

Example of overbought na oversold conditions detected using the Stocastics Oscillator.



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