Overbought and Oversold OB (Overbought) and OS (Oversold) is a condition where the price can no longer continue the trend because it is too expensive or too cheap price so that the trend can no longer be continued. In contrast to support and resistance which is a psychological level which is basically just an unofficial collective agreement among traders, OB and OS itself is a common and real situation happening in the market (not just psychological matters). In the event that the price reaches its OB or OS point it is expected that the price will reverse direction and the trend will stop soon. So as it moves up and the OB point has been reached, then the price will come back, the ascending trend will stop and then be replaced with the move down the currency. Vice versa when the price moves down and then enter the OS area then the price will move back up and down trend also stopped. OB and OS often occur in Support and Resistance points, this is because both are the same point that is the trend counter. But not always. Of course the buy and sell decision will be very supportive if the price is not at these extreme points. Now the question is how to determine this OB and OS point? The easiest way is to use an Oscillator type indicator such as RSI or Stochastic. These indicators are designed to determine the OB and OS spots. With regard to these indicators we can estimate when a trend ends and is replaced with the next trend. Thus we can set the timing of position opening for the better.