Wednesday, 1 November 2017

How do I find out if a stock is under priced or over priced? How can I find a undervalued or oversold stock? How does Stochastic momentum indicate oversold or overbought position?


How do I find out if a stock is under priced or over priced? How can I find a undervalued or oversold stock? How does Stochastic momentum indicate oversold or overbought position?


There are many websites / stock screeners which tell about under priced or over priced stocks. For very short term or short term period investment, Using them you can do your own technical and fundamental analysis to find the best stock at best reasonable price level.


In my experience, RSI and Stochastic Momentum are the best two Technical indicators for finding the oversold or undervalued stocks.


Just see the following Stochastic Momentum, how it indicates the oversold and overbought position:




You can use this indicator for your intraday chart also to know the oversold and overbought position of any specific stock.




Hope this will help you.


Happy Trading and Investing.

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