overbought = overbuying of quantity but it doesn't mean that it isn't going to rise again same as oversold. when the big players buy at the particle price levels at overbought area, they will pull the price higher and waiting fishes to get hooked. the better measurement to the weakest of stochastic is RSI.
Overbought vs. Oversold and What This Means for Traders
Like many professions, trading involves a lot of jargon that is difficult to follow by someone new to the industry. It’s our job as instructors to fill in as many knowledge gaps as possible to make the education process as simple as possible. Today, we will take a look at what it means for a currency pair to be overbought or oversold, and most importantly, what trading opportunities arise from these situations. Overbought vs. Oversold These two terms actually describe themselves pretty well. Overbought describes a period of time where there has been a significant and consistent upward move in price over a period of ... (full story)