Quantum Wave
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  • 🌊Quantum Wave Guide
    • Introduction
      • Purpose
      • Key Concepts
      • Prerequisites
    • Getting Started
      • Installation
      • Settings
      • Combining with Strategies
      • How to update Quantum Wave
    • Understanding Quantum Wave
      • Hypothesis
      • Overbought and Oversold
      • Visual Aid
    • Trading Modes
      • Scalp Mode
      • Day Mode
      • Swing Mode (Default)
      • Position Mode
      • Automatic
    • Features
      • Confirmation Mode
      • Overwrite Mode
    • Strategy
    • Important Tips & Tricks
    • Examples
    • tldr;
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  1. 🌊Quantum Wave Guide
  2. Understanding Quantum Wave

Overbought and Oversold

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Last updated 1 year ago

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  • Definition
  • Quantum Wave Signals

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Definition

  • Overbought conditions occur when an asset is perceived to be trading at a level above its intrinsic value.

  • Oversold conditions suggest it's trading below its intrinsic value.

  • These conditions are indicators of potential market reversals.

Quantum Wave Signals

  • When all waves come together at the overbought area, this signals a good chance to short or take profits for long positions

  • When all waves come together at the oversold area, this signals a good chance to long or take profits for short position

  • The indicator identifies overbought and oversold regions by analyzing the convergence of stochastic waves across timeframes, signaling high probability areas for market reversals.