Technical analysis
Oversold
An asset is oversold when its price has fallen fast and far, to the point a bounce becomes more likely.
An asset is oversold when its price has fallen fast and far, to the point a bounce becomes more likely.
Oversold is often spotted with the RSI below 30. As with overbought, an asset can stay oversold for a long time in a strong decline: it is a marker, not a guaranteed bounce.
The RSI drops to 22 after a sharp fall: the asset is oversold, a technical bounce is possible.
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