Guide Trading to Understanding Overbought and Oversold Markets on Binomo

Overbought and oversold markets definition
The market is never static. It may be ranging or trending, but it is always on move. The price sometimes rises very high and falls very low on other occasions. And when it reaches extreme values, we say that the market is either overbought or oversold.

The instrument is considered to be overbought when the price continues upward movement for a long time and is placed extremely high on the price chart. In this case, we expect the reversal of its direction.

We can talk about the asset being oversold when the price falls for a long time without many pullbacks and reaches extremely low values. Also, a reversal of the trend is anticipated.