I am still working on this theory and this is only and small part of the original work ...
From my point of view Oversold or Overbought play the role of the Market Maker levels to act when overpower each other, the time to stabilize the market before continuations of an uptrend or downtrend and that's why this indicator is so famous... If you know how the market work you probably will understand it . I will discuss more of this in the future... Follow me for updates on this theory.
HFT=HIGH FREQUENCY TRADING
FILL OR KILL ORDER: A LARGE QUANTITY OF ORDER THAT NEED TO BE FILL ENTIRELY
OR CANCEL ...
HFT MADE THIS POSSIBLE IN MILLISECONDS finding a big buyer before affecting prices in our real world...Up to you guys to decide but the true is that we are only less than 12% in the trading environment. Institutions ,Corporations , Banks, Hedge Funds made the difference.
$1250 is strong support but this time it will be looking for $1248 to fill other buy orders. After that it will continue the uptrend