Overbought and oversold conditions are technical analysis indicators that suggest when an asset may be overvalued or undervalued, potentially signaling a reversal in its price trend. These conditions are often identified using momentum oscillators like the Relative Strength Index (RSI) or Stochastic Oscillator, helping traders make informed decisions about entering or exiting positions.

Overbought And Oversold Conditions

Overbought conditions

oversold conditions

technical analysis indicators

Asset valuation is the process of determining the fair market value of an asset, which is crucial for investment analysis, financial reporting, and merger and acquisition decisions. It involves various methodologies and considerations, such as market conditions, asset characteristics, and economic factors, to ensure accurate and reliable valuations.

Asset Valuation

Price Trend Reversal

momentum oscillators

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements, typically used to identify overbought or oversold conditions in a market. It ranges from 0 to 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions.

Relative Strength Index

The Stochastic Oscillator is a momentum indicator that compares a particular closing price of a security to a range of its prices over a certain period, aiming to predict price turning points by identifying overbought or oversold conditions. It operates on the principle that prices tend to close near the high in an uptrend and near the low in a downtrend, providing insights into potential reversals or continuations of trends.

Your Courses

Relevant Degrees

Your Lessons