What is the indicator of being oversold?
If those lines at the bottom go below or above the middle area, it is oversold or overbought. The MACD is a little different, if it goes above the pink pink area it is bullish, if it is below that pivot point, it is bearish. If the two lines cross, then it might be a change in trend also.
Usually if two lines cross, then touch the middle area, that's a change in trend signal.
The pink area on the MACD is volume. If it's above the pink pivot then it's more bought, if it below then it is more sold. They tend to be curvature.
The BB %R takes in account the bollinger bands and the %R, when it bounces off of the walls.
At times one or more of these indicators can be misleading.
Thank you!
So MACD tells us we are bearish, because only cross above the pink area tells signals bullish market, yes? Do I understand correctly that oversold is interpreted as expecation to get back to higher pricepoint?Currently the MACD is bearish for the long term, but the lines there are about to cross over, so it might be bullish for a little while. Oversold or overbought usually means that the market is due for a correction or change in trend.
