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Oversold
Technical Analysis
Oversold describes a price that has fallen so fast in a short time that a momentum indicator (most often RSI below 30) has dropped under its conventional threshold.
It is read as a sign the decline may slow or a relief bounce may come. It is not a buy signal: in sharp sell-offs, especially after bad news, price can stay oversold for a long time.
The Shape of It
A conceptual drawing; it does not show a real series.
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