What is overbought and oversold? What are the overbought and oversold indicators

Hello, overbought, which describes a market or a stock that has risen sharply due to too many people chasing it, and the stock price itself has drastically deviated from its intrinsic value. However, after a round of sharp rises, when the highs are not enough to take up the slack, the price may experience a technical downward adjustment.

Oversold is a term used to describe a market or a stock that has fallen sharply due to too many sellers, with the price itself falling significantly below its real value. However, after a sharp decline, selling pressure at the lower end of the scale is reduced significantly, and a technical upward price rebound may occur.

In the A-share market, the stock overbought and oversold indicators are CCI indicator, KDJ indicator, MFI indicator, OSC indicator, ROC indicator, RSI indicator, UDL indicator, WR indicator, LWR indicator, BIAS indicator, WIDTH indicator, ACCER indicator, CYD indicator, CYF indicator, FSL indicator, ADTM indicator, ATR indicator, DKX indicator, TAPP indicator, and so on. DKX indicator, TAPI indicator and so on.

There are also different versions of overbought and oversold indicators. For example: KDJ-TDX (Stochastic - Traditional), BIAS-QL (Deviation - Traditional), BIAS36 (Triple-Six Deviation) and so on. Investors can choose the technical indicators that suit their trading strategy for reference according to investors' different analyzing habits.

The overbought and oversold indicators in the market are mainly calculated through the running trend of the stock price and the formation of technical indicators. When a stock is overbought by the market speculation, it is an overbought signal, a risky selling point reference signal. Conversely, when a stock is over-sold by the market, it is an oversold signal, an opportunity buy point reference signal.

This information does not constitute any investment advice, and investors should not rely on this information to replace their independent judgment or make decisions based on this information alone.