What is Oversold?

A situation in which the price of an asset has fallen to such a degree that it is considered to be below its intrinsic value.

In-Depth Explanation

Oversold levels are often used as a signal that the current downtrend may be exhausted and a bounce or reversal is likely.

"The price has dropped for 10 consecutive days and the RSI is at 20, suggesting it is oversold."

Knowing the terms is just the start. Learning how to apply them is where the edge is found.