1. A condition in which the price of an underlying asset has fallen sharply, and to a level below which its true value resides. This condition is usually a result of market overreaction or panic selling.

2. A situation in technical analysis where the price of an asset has fallen to such a degree - usually on high volume - that an oscillator has reached a lower bound. This is generally interpreted as a sign that the price of the asset is becoming undervalued and may represent a buying opportunity for investors.

1. Assets that have experienced sharp declines over a brief period of time are often deemed to be oversold. Determining the degree to which an asset is oversold is very subjective and could easily differ between investors.

2. Identifying areas where the price of an underlying asset has been unjustifiably pushed to extremely low levels is the main goal of many technical indicators such as the relative strength index, the stochastic oscillator, the moving average convergence divergence and the money flow index.

Oversold is the opposite of overbought.

Investment dictionary. . 2012.

Look at other dictionaries:

  • oversold — A technical description for a market in which prices have dropped faster than the underlying fundamental factors would suggest. The CENTER ONLINE Futures Glossary Used in the context of general equities. Technically too low in price, and hence a… …   Financial and business terms

  • Oversold — Oversell O ver*sell , v. t. [imp. & p. p. {Oversold}; p. pr. & vb. n. {Overselling}. ] 1. To sell for a higher price than; to exceed in selling price. [1913 Webster] One whose beauty Would oversell all Italy. Beau. & Fl. [1913 Webster] 2. To sell …   The Collaborative International Dictionary of English

  • oversold — adjective Date: 1926 likely to show a rise in price because of prior heavy selling and accompanying decline in price < an oversold stock > …   New Collegiate Dictionary

  • oversold — /oh veuhr sohld /, v. 1. pt. and pp. of oversell. adj. 2. marked by prices considered unjustifiably low because of heavy and extensive selling: The stock market is oversold. Cf. overbought. [1875 80; OVER + SOLD] * * * …   Universalium

  • oversold — past and past part. of OVERSELL. * * * oversold see oversell v …   Useful english dictionary

  • oversold — adjective A stock or commodity market condition where there has been significant trading driving prices down to lower levels, levels which seem overextended or excessive on a short term basis. Ant: overbought …   Wiktionary

  • oversold — Synonyms and related words: aggrandized, amplified, ballyhooed, disproportionate, exaggerated, excessive, exorbitant, extravagant, extreme, grandiloquent, high flown, hyperbolic, inflated, inordinate, magnified, overdone, overdrawn,… …   Moby Thesaurus

  • oversold — o|ver|sold the past tense and past participle of oversell …   Usage of the words and phrases in modern English

  • OVERSOLD — Аналогично overbought , за исключением того, что цена падает слишком низко и слишком быстро и, вероятно, будет откат цен вверх. Дословно рынок перепродан …   Малая энциклопедия трейдера: глоссарий к книге

  • oversold — v. sell more than can be provided or manufactured; promote excessively; extol a person or thing too highly …   English contemporary dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.