Hi guys. I follow the news on the mt5 platform. The news also gives a chart on the concensus of the pair. I have noticed that sometimes the chart says bearish and consencus says over bought… im a bit confused… if a pair is over oversold then why is it bearish? Would not the pair be bullish?
Hmm. 
I’m sure more people can explain this so much better but, because you have a lot of “sellers,” supply is high and demand is low. It’s bearish because price tends to go down at times like this.
Isnt ob/os a guage to tell you how the market conditions are? I suppose it doesnt really matter because if there are sellers and buyers, then price can go anywhere and vice versa
Whose consensus is it? I hope not private retail traders, as the majority of them at any one time are losing money.
1 Like
To be trusted these categorisations have to be transparent - we have to know how they are derived.
@rolenn01, OB/OS indications are often derived from oscillators such as the RSI. When a strong trend has formed, typically the RSI will remain in an OB/OS region for most of the duration of the trend. The key is to look for an OB condition when in a down trend and an OS conditions when in an uptrend so that you can gauge trend continuations and enter or add to your position.
It is important to understand that an OB/OS condition does not necessarily signal a trend reversal.
1 Like
Bearish trend is when the price goes below and bullish is when the price goes up. You can also visit Investing.com as it gives detailed technical analysis which is much simpler to understand. Fundamental and technical analysis is of utmost importance and it should always be considered before putting any of your trades.