Meaning of oversold in forex

Please enter a different search text and try again. Airasia – Time to Meaning of oversold in forex Now! As of Wednesday morning, this stood at 17. 23, the lowest level in about a year.

A reading below 30 is considered oversold. An outside day to the upside occurs when any market initially trades below the prior day’s low, then reverses and closes above the prior day’s high. This is generally seen as a sign that a market’s near-term momentum may be changing. 90, the multi-month low hit back in December. Suppose the market trades below this, triggering sell stops, which are pre-placed orders activated when certain prices are hit. Then suppose the market reverses and closes above the previous day’s high.

That would be helpful as a sign of a potential reversal, Nedoss explained. Even better, he said, would be if the U. The September dollar index did in fact post an outside day to the downside four days ago, Nedoss pointed out. First, it traded above the previous day’s high and then closed below the previous day’s low.