Understanding Market Overbought & Oversold States in Trading

One of the major execution bottlenecks faced by most tradersin the market, isn’t in having a proven trading strategy or a foolproof risk management plan, but in being able to gauge in the real time the market momentum & sentiment and executing trades from same and high probability region of the market every time.

As even a tested and proven strategy could fail when executed or implemented at the wrong time or zone in the market. A trader who can determine the market sentiment and momentum in real time, has won more than half the battle in the quest for consistency and accuracy of trade execution n trading.

How does a trader achieve this?

That is where the knowledge and understanding of the market overbought & oversold states and their signals come in to the picture. As an understanding of the market overbought & oversold state or condition and being able to pinpoint, locate and get a read on  these signals of the market in real time, positions a trader for;

⦁ Capturing the market/price turning point early on and beforehand.

⦁ Determine the onset or start of a trend from the get go.

⦁ Know when price is due for reversal or turnaround beforehand.

⦁ Know with clarity and conviction the suitable zone or region to enter or exit a trade.

⦁ Know the balance between  Buyers(Bulls) and Sellers(Bears) and be able to determine with clarity which of bullish or bearish market force or pressure is greater  at any given point in the market.

⦁ Be able to spot shift in the market sentiment and tone in real time.

This course answers and addresses the question of;

⦁ How to a read on the real time market sentiment and where price is headed.

⦁ The safe and favorable zone for entering and exiting a trade.

⦁ The spotting and capturing market trends and reversals early on.

At the end of this course, a trader will be better equipped to gauge the market health, weigh the balance between the dominant market forces & sentiment, spot trends early and get in to favorable trades in real time, all while avoiding execution traps and pitfalls.