Markets like to trade in price ranges. Oversold and overbought is best measured by the number of points away from the controlling price. This is the Computer Mean that i refer to and where the algo traders like to take prices. In the case of TF above you can see the it hit 10 points above the mean and also it likes to bounce at 10 points below the mean. Yesterday every time we hit 10 to 11 points below the mean the market bounced. 7 to 15 points.
