Oversold

Definition

A market condition where a security has fallen significantly and rapidly, potentially below its fair value. Indicators like RSI below 30 or Stochastic below 20 suggest oversold conditions. It may signal an upcoming bounce or reversal.

Related Terms

Overbought Relative Strength Index (RSI)

More Technical Analysis Terms

Technical Analysis Fundamental Analysis Support and Resistance Trend Line Trend Moving Average (MA)Exponential Moving Average (EMA)Simple Moving Average (SMA)Relative Strength Index (RSI)MACD (Moving Average Convergence Divergence)