Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
A low oscillator reading, conventionally RSI below 30, indicating that recent moves have been strongly one-sided to the downside.
It describes momentum, not value. In a strong downtrend an oscillator can print oversold all the way down, and bounces top out near 55–60 rather than 70.
The tendency of an oscillator such as RSI to occupy a different band of readings depending on whether the market is trending or ranging.
In a strong uptrend pullbacks bottom near 40–50, not 30. Waiting for the textbook oversold reading in a trending stock means never buying at all.