1. overbought a stock is called overbought; Conversely, overselling a stock is called overselling. Before learning to identify foreign exchange overbought and oversold indicators, we must first have a general understanding of them. The so-called foreign exchange overbought and oversold is caused by the inertia of stock price trend.

2. overbought and oversold (OBOS) is an analytical tool to measure the momentum of general trends. The calculation and analysis method is simple but practical. Calculate the sum of the number of stocks that rose in N days, and then calculate the sum of the number of stocks that fell in these days. After subtraction, the OBOS value is obtained. For example, on the first day, 20 stocks rose and 10 stocks fell, but on the second day, 29 stocks rose and 1 1 stock fell, so the value of OBOS is 20+29-( 10+ 1)=38.

3. In the stock market, investors often have a strong reaction to the market or individual stocks because of the spread of some news, which leads to excessive rise or fall of the stock market or individual stocks, so there is a phenomenon of overbought and oversold. When investors' emotions calm down, the impact of overbought and oversold will be gradually adjusted appropriately.

4. Therefore, after overbought, the stock price will fall; There will be a considerable rebound after oversold. If investors understand this overbought and oversold phenomenon and grasp its movement law in time, they can increase their profit opportunities in the stock market.

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