Oversold
A condition where prices have fallen too far, too fast and may bounce.
Full Definition
Oversold refers to a condition where an asset has fallen significantly and may be due for a bounce or reversal. Oscillators like RSI (below 30) and Stochastic (below 20) help identify oversold conditions. However, markets can remain oversold during strong downtrends, so oversold alone is not a buy signal without confirmation.