Foreign Exchange Rates

Assets that have experienced sharp declines over a brief period of time are often deemed to be Oversold. Determining the degree to which an asset is oversold is very subjective and could easily differ between investors.

Oversold – Overbought relative that refers to the fundamental factors, asset prices have fallen to unreasonable levels, usually occurs after a sharp fall in the price of the short term. Oversold means the price is vulnerable to upward adjustment. In technical analysis, when a financial instrument’s Relative Strength Index of less than 25%, generally regarded as an “oversold. ” Opposite of “overbought”