Overbought Oversold Indicator
An Overbought/Oversold Indicator is a technical analysis tool used to assess whether an asset's price is trading at an extreme level, suggesting it may be due for a reversal. When an asset is overbought, its price is considered to have risen too quickly and may be at risk of a downturn. Conversely, when an asset is oversold, its price has dropped too sharply and could be set for a bounce.