Term used to describe a security that has declined appreciably & in which the probability of a corrective rally is high. Many technical oscillators, such as RSI & Stochastics, are used to try to determine at what point an oversold condition exists. The stronger the downtrend, however, the more likely an oscillator will give the technician a false signal.
The reverse of overbought. For the market as a whole, these conditions are often identified by a large number of net Declines (or Advances) for the period, high on balance volume and/or large momentum calculations. Extreme situations can continue for extended periods of time before the eventual reversal occurs. E-K L-O P-R U-Z
A market condition in which prices have fallen too fast and too far, relative to the underlying fundamental factors. Traders would expect prices to increase in this type of market, at least in the near term. P&S (Purchase-and-sale) Statement - A statement sent by a brokerage firm to a customer when a futures or options position is offset or extinguished by delivery. A P&S statement typically shows the number of contracts involved, the prices at which and dates on which the contracts were bought and sold, the gross profit or loss, the commission charges, the net profit or loss on the transactions and the account balance.
A single security or a market that technical analysts believe has declined to an unreasonable level and thus, should start to rise. If all shareholders who want to sell the stock have already done so, there should only be buyers in the market, and thus, the price will rise. See: Correction; Overbought; Technical Analysis
Market prices that have declined to a point that there is a lack of any new sellers. Momentum indicators are employed to identify oversold conditions but are generally only accurate in consolidating markets. Note: Oversold conditions within an uptrend can alert traders to buying opportunities.
An oversold commodity is one whose prices have been pushed down to a level that is considered unrealistically low and unsustainable, and could therefore spark an upward reaction. A trader who has oversold a commodity is said to hold a 'short position' within that commodity. (Opposite of Overbought).
See on: Investopedia A condition in which the price of an underlying asset has fallen sharply, and to a level below which its true value resides. This condition is usually a result of market overreaction or panic selling. A situation in technical analysis where the price of an asset has fallen to such a degree - usually on high volume - that an oscillator has reached a lower bound. This is generally interpreted as a sign that the price of the asset is becoming undervalued and may represent a buying opportunity for investors.
A technical term which means that prices are considered too low and may rally in an upward direction. Oversold conditions can be classified by analyzing the chart pattern or with indicators such as Stochastic Oscillator and RSI. It is important to keep in mind that oversold is not necessarily the same as being bullish. It merely infers that the security has fallen too far too fast and may be due for a reaction rally.
A term used to describe a market or a stock that has declined so rapidly and has generated such excessively bearish sentiment that a near-term rally is highly likely TOP 3 STOCKMARKET SEARCHES FROM FIND.co.uk Online Brokers The Share Centre TD Waterhouse Barclays Stockbrokers Spread Betting CMC Markets Finspreads IG Index CFDs Man Financial City Index E*Trade Pro. Traded Options IG Markets
Situation where price movement has fallen 150% faster or stronger than normal, declining too far in response to net selling. A price movement that becomes oversold is expected to soon make a contrarian move. In other words, the price of the currency pair is expected to soon rise.
A term used to describe a market or a stock that has declined so rapidly and has generated such excessively bearish sentiment that a near-term rally is highly likely TOP 3 STOCKMARKET SEARCHES FROM FIND.co.uk Online Brokers SelfTrade TD Waterhouse iWeb.com Spread Betting Cantor Index Barclays spread Betting IG Index CFDs IG Markets
While watching CNBC, they hear bad news about a stock they own (the CEO didn't make as much this year as last year) and the investor sells 200 shares when they only had 100 shares in their account. OOPS