Oversold

The opposite of overbought -- a condition where a security has fallen sharply and may be poised for a bounce. An RSI below 30 is the standard oversold signal, and other indicators like Bollinger Bands and stochastics provide similar readings. Oversold conditions attract value buyers and bottom fishers, but as with overbought readings, a stock can stay oversold far longer than a trader can stay solvent, particularly during genuine bear markets or fundamental deterioration.