Oversold
A condition where a price has fallen hard and fast enough that an oscillator like RSI reaches a low extreme — conventionally RSI below 30. Oversold does not mean cheap or safe: in a genuine downtrend an asset can stay oversold for weeks. Mean-reversion systems treat oversold readings as candidate entries, usually in assets with strong long-term upward drift.
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Related terms
OverboughtThe high extreme of an oscillator — conventionally RSI above 70 — indi…RSI (Relative Strength Index)A momentum oscillator that scores the speed of recent price changes on…Mean ReversionThe tendency of a price stretched far from its recent average to snap …
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