Oversold
Volume Price Analysis glossary · Volume Price Analysis
Definition
In VPA, a market where insiders have accumulated most available supply and remaining sellers are predominantly retail; identified by stopping volume and absorption at support.
Oversold in plain English
"Oversold" is the flip side: a price has fallen so far it's likely to bounce — and again VPA defines it by what the big players have DONE, not by a number on a gauge. It means the insiders have quietly BOUGHT UP most of the shares that scared sellers were dumping ("accumulated the supply"), so the only sellers left are small retail traders panicking near the bottom. The tell is "stopping volume" — a burst of huge volume that halts the fall as big buyers step in and absorb everything at a support level (a price floor). Think of a falling ball hitting a thick mattress: the heavy money underneath catches it, and the next move is usually back up.
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