| When the issue becomes overbought, the oscillator will reverse its direction. |
| In summary, the means by which traders can filter out most bad trades involves an intimate knowledge of overbought and oversold conditions. |
| A large positive risk-reversal number implies an overbought situation, while a large negative risk-reversal number implies an oversold situation. |
| First off, the 20-day price channels on top of the price action allow you to follow the overbought and oversold positions of this chart. |
| But a consultant may learn you've overbought certain categories of inventory that aren't moving well. |
| The bond markets are oversold and equities are still overbought, despite the consolidation we've had. |
