Lesson 1: Oversold Chart Pattern
Lesson 1: Oversold Chart Pattern – COOL, ZAGG, RENN, HDY, QPSA, GLUU, LOCM
1. 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.
2. 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.
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