In the world of finance, there is a key indicator that serves as a warning sign when prices have experienced a rapid and extreme movement, leaving them susceptible to a potential backlash. This indicator is known as an overbought or oversold condition, and it helps investors determine when it may be the right time to buy or sell. Understanding this concept is essential for making informed financial decisions and navigating the volatile nature of the market. Let's delve deeper into this term and its implications for investors.
