The "Overbought / Sold" screen

The "Overbought / Sold" screen under the Watchlist Overview tab shows which currency pairs are currently considered overbought or oversold based on popular technical indicators.

Currency pairs oscillate between overbought and oversold conditions.

Overbought means an extended price move to the upside.

Oversold means an extended price move to the downside.

Because price can’t move in one direction forever, price will turn around at some point.

Currency pairs that are considered overbought or oversold have a greater possibility of reversing direction, but this isn’t necessarily guaranteed.

A currency pair can also remain overbought or oversold longer than expected, but the longer it remains overbought or oversold, the stronger the possibility of a trend reversal.
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The example above analyzes overbought and oversold conditions for currency pairs that are part of the GBP Pairs watchlist. 

Five technical indicators are displayed to measure whether a currency pair is overbought, neutral, or oversold:

  1. Relative Strength Index (RSI)
  2. Stochastic
  3. Williams %R
  4. Bollinger Bands
  5. Keltner Channel

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