what does a stock being oversold mean

Monday, February 21, 2022 Edit

Strategies based on this indicator have worked well on stocks and ETFs in the past. Profits can be taken when the indicator breaks back above 50 or 60.

Oversold Definition And Example

The oversold momentum indicators showed that there was a chance ALGO could see some upside before the next leg down.

. At the time of writing the price was 089 and both the RSI and the Stochastic RSI were in oversold territory. The Awesome Oscillator was also heavily bearish. When a stock becomes extremely oversold in a short space of time short sellers will take profits.

Longs will also throw in the towel or have their stops hit. However the trend would likely still remain bearish. This can trigger a quick rebound in price.

What Does It Mean When The Market Is Oversold Tradingsim