Term

Oversold

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When a trading instrument is regarded as oversold, it basically means that as already explained above "over extended", one should expect a reversal of that move, also on other variables that are present at that time it could also be a reversal signal. That is, provided that the market has reached a significant support and the market is oversold, and there are other confirmations complimenting a reversal. For more information on stochastics strategies click here.

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