Why does the price move? The answer is here!!! - page 16

[Дмитрий]

Where then does the notion of overbought/over-sold come from?

[Dmitry Chepik]

grell:
Where does the notion of overbought/oversold come from then?

"Jargon" of speculators))) which has nothing to do with markets)))

[Дмитрий]

How about deeper? That's my point.

[Martingeil1]

I think alex12 has it deeper)))

[sergeyas]

grell:
How about deeper? I am getting to the heart of the matter.

A rush of demand (mass greed madness) pushes the price above the objective (fundamentally determined) price - overbought.

The panic terror of the masses is pushing the price sell-off below objective - oversold.

Or do you see something more profound?

It's jargon, yes. But it has more to do with the real market.

IMHO.

[Martingeil1]

not to the real price but to a technical understanding of the price :)

the real thing is what drives that price.

[sergeyas]

Martingeil:

not to the real price but to a technical understanding of the price :)

the real thing is what drives that price.

A "technical understanding of price" should be as close to the real picture as possible - don't you think?)

[Дмитрий]

sergeyas:
"Technical understanding of price" should be as close to the real picture as possible - don't you think?)

No, they are different things. Like cause and effect. What really drives the price and what then technically happens to it.

[sergeyas]

grell:
No, they are different things. Like cause and effect. What really drives the price and what then technically happens to it.

What's the nuance? Doesn't the psychology of the masses move the price?

[Дмитрий]

Difficulties of translation:) The point is that there is a real reason (crowds, banks, and others) why the price technically changes.