## Overtrading and Overbuying in Price Analysis: Essential Tools Traders Must Know
In the general trading community, one of the most common problems leading to frequent losses is entering buy or sell positions at inappropriate prices. The phenomena of **Overbought** (overbuying) and **Oversold** (overselling) refer to market conditions where assets are sold or bought excessively beyond what is justified. These are technical analysis tools that help traders avoid poor entry points.
### Basic Meaning of Overbought and Oversold
**Oversold (selling too much)** occurs when an asset is sold excessiv
View OriginalIn the general trading community, one of the most common problems leading to frequent losses is entering buy or sell positions at inappropriate prices. The phenomena of **Overbought** (overbuying) and **Oversold** (overselling) refer to market conditions where assets are sold or bought excessively beyond what is justified. These are technical analysis tools that help traders avoid poor entry points.
### Basic Meaning of Overbought and Oversold
**Oversold (selling too much)** occurs when an asset is sold excessiv