Oversold and oversold are terms in financial markets, which are used to describe the extreme fluctuation of asset prices in a short period of time. Overbuying means that asset prices rise to a level that fundamentals cannot support, and may be revised downward; Oversold means that asset prices fall to a level that is considered unreasonable or underestimated by fundamentals, and may be revised upwards.

In the financial market, overbought and oversold are phenomena that investors and traders often pay attention to. Overbuying means that the market bulls are too strong, and the price may be too high and need to be adjusted. Investors may consider lightening or closing their positions to avoid falling prices. On the contrary, oversold means that the market is too short-selling, the price may be too low, and it is expected to rebound. Investors can consider increasing or opening positions to cope with rising prices. Relative Strength Index (RSI) in technical analysis is often used to judge overbought and oversold. When RSI exceeds 75%, it is considered overbought; When RSI is less than 25%, it is considered oversold. Investors can combine technical analysis and fundamental analysis to find and deal with overbought and oversold in time, so as to formulate more effective trading strategies. These concepts are of great significance in the financial market, which can help investors better understand the market conditions and the mechanism of price fluctuations.