oversold

Have you ever relied too heavily on technical indicators when making trading decisions? While technical analysis plays a key role in forex trading, an overreliance can be risky. As the world of forex trading continues to evolve, traders increasingly turn to technical indicators to guide their decision-making. These tools can offer valuable insights into market trends and potential entry and exit points. However, the growing dependence on them may lead to overlooking other crucial factors like market sentiment, economic news, and fundamental analysis.

Technical analysis of the forex market includes many different concepts and definitions, one of which is overbought and oversold. These terms have existed on the market since the very inception of technical analysis and are very important tools in the arsenal of any trader. They are used on all world exchanges and are still relevant.