What do oversold and overbought mean?
Overbought is a term that describes a situation in which price has risen to such a degree that an oscillator has reached its upper bound. This is generally interpreted as a sign that price is becoming overvalued and may possibly experience a downward correction. Oversold is a term that describes a situation in which price has fallen to such a degree that an oscillator has reached its lower bound. This is generally interpreted as a sign that price is becoming undervalued and may possibly experience an upward correction.
