What does 'Oversold' mean
Oversold is a condition in which the price of an underlying asset has fallen sharply, and to a level below where its true value resides. This condition is usually a result of market overreaction or panic selling.
2. A situation in technical analysis where the price of an asset has fallen to such a degree  usually on high volume  that an oscillator has reached a lower bound. This is generally interpreted as a sign that the price of the asset is becoming undervalued and may represent a buying opportunity for investors.
BREAKING DOWN 'Oversold'
1. Assets that have experienced sharp declines over a brief period of time are often deemed to be oversold. Determining the degree to which an asset is oversold is very subjective and could easily differ between investors.
2. Identifying areas where the price of an underlying asset has been unjustifiably pushed to extremely low levels is the main goal of many technical indicators such as the relative strength index, the stochastic oscillator, the moving average convergence divergence and the money flow index.
Oversold is the opposite of overbought.

Overbought
1. A situation in which the demand for a certain asset unjustifiably ... 
Oversold Bounce
An oversold bounce is a rally in prices that occurs due to the ... 
Dynamic Momentum Index
An indicator used in technical analysis that determines overbought ... 
Stochastic Oscillator
A technical momentum indicator that compares a security's closing ... 
StochRSI
An indicator used in technical analysis that ranges between zero ... 
Chande Momentum Oscillator
A technical momentum indicator invented by the technical analyst ...

Trading
What Does Oversold Mean?
The term oversold has several applications for an assetâ€™s price. 
Trading
Overbought Or Oversold? Use The Relative Strength Index To Find Out
The Relative Strength Index comes in handy when identifying areas that are potentially overbought or oversold. 
Trading
Overbought Or Oversold? Using The RSI To Find Out
The Relative Strength Index is a technical indicator that measures the velocity and magnitude of changes in a stockâ€™s price. 
Trading
Beginner's Guide To Stockcharts.com: Indicators
Indicators are calculations based on price and volume history of a ticker. There are many different indicators, each with a unique formula used to measure such things as volatility, momentum, ... 
Trading
How To Apply Relative Strength Index With MetaTrader 4: Relative Strength Index  RSI
The Relative Strength Index (RSI), shown in Figure 1, is a momentum oscillator that compares the magnitude of recent raises in price to recent drops in order to help traders identify overbought ... 
Trading
Technical Analysis: Indicators And Oscillators
By Cory Janssen, Chad Langager and Casey MurphyIndicators are calculations based on the price and the volume of a security that measure such things as money flow, trends, volatility and momentum. ... 
Trading
Confirming Price Movements With Volume Oscillators
Use this indicator to validate a change in price direction and moving averages. 
Trading
Exploring Oscillators and Indicators: Conclusion
By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The goal of every shortterm trader is to determine the direction of a given asset's momentum and to attempt to profit from ... 
Trading
Stochastics: An Accurate Buy And Sell Indicator
Find out how stochastics are used to create buy and sell signals for traders. 
Trading
How Do You Use the Stochastic Oscillator?
A stochastic oscillator is a technical momentum indicator that compares a security's closing price to its price range over a given time period.

What precisely is a stochastic oscillator meant to predict?
Gain a basic understanding of the stochastic oscillator and how this technical indicator is designed to predict reversals ... Read Answer >> 
What are the best indicators to identify overbought and oversold stocks?
Learn about the interpretation of the relative strength index and stochastics, two of the most popular indicators of overbought ... Read Answer >> 
How do I read and interpret an Stochastic Oscillator?
Understand the basics of the stochastic oscillator and how analysts and traders use this measure of trend momentum to predicts ... Read Answer >> 
What are the best ways to measure if a stock is oversold?
Understand two of the most common methods for measuring the oversold status of a stock, the basics of calculation and how ... Read Answer >> 
What is the Williams %R oscillator formula and how is it calculated?
Learn the formula for calculating the Williams %R indicator, an oscillator similar to the stochastic oscillator, and the ... Read Answer >> 
How do I use Stochastic Oscillator to create a forex trading strategy?
Learn about the stochastic oscillator and how to it is used to create an effective forex trade strategy, including how to ... Read Answer >>