Overbought and Oversold

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.