Internet
oversold
What does oversold mean?
An asset is oversold when it has dropped sharply and, by indicators like RSI below 30, may be overextended to the downside and due for a bounce. It suggests selling pressure has been excessive.
"With RSI under 25 the stock looks oversold and ripe for a rebound."
Origin
Technical-analysis term; the asset has been 'sold' beyond a sustainable level.
Frequently asked questions
What does oversold mean?
It describes an asset that has fallen so fast that indicators, like an RSI below 30, suggest selling pressure has been excessive and a bounce may be coming.
What is the opposite of oversold?
Overbought, which is when an asset has risen too fast and may be due for a pullback.
Does oversold mean it's a good time to buy?
It hints that a rebound is possible, but oversold assets can keep falling, so it's a signal rather than a guarantee.
Study it as flashcards or scroll it in Vocabulary Flow — saved to your collection.
