Overbought and Oversold
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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.
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.