|
Short-, Mid- and Long-Term Oversold/Overbought Depending on the analyzed time-frame the market, index or stock could be considered overbought or oversold in long-, mid- or short-term. Furthermore, we may expect long-, mid- or short-term trend reversal. For instance, when we refer to 15-day chart (1 bar = 15 min) and talk about oversold or overbought condition we point to the trends within this timeframe and possible trend reversal within this time-frame.
As a rule when we see Bullish or Bearish Volume Accumulation on the lower time-frame which is not noticeable on the higher time-frame we state that this volume may push the price lower or higher in shorter term within the longer-term trend which is defined by Volume Accumulation seen on the longer time-frame chart.
It is important to understand that signals generated on the shorter time-frame chart which are opposite to the signals generated on the longer-term chart could be ignored while we may see stronger trend reversal reaction on the signals generated on the shorter-term chart which go along with longer-term signals. |