A traded amount that is less than the typical amount traded for a specific asset. For stocks, the typical trade lot is 100 shares, which is referred to as a round lot.

This pattern often occurs at tops or bottoms in a market or stock and signifies the reversal of the overall trend. During an uptrend, a stock will open above the previous day’s close, trade higher making new highs, but will close below the low of the previous day. During a downtrend, a stock will open below the previous day’s close, trade lower making new lows, but will close above the previous day’s high. The more significant the volume or price swing on this day is than the more significant the signal.

A term for when a security’s prices (High & Low) exceed the range of prices of the previous day (both high and low). If the security closes outside of a resistance level then this is very Bullish, whereas if this occurs inside of a resistance level, to the down-side, it is generally viewed as Bearish.

An Overbought situation can occur when a security price has risen dramatically above what many believe to be a fair price based on fundamentals of the security. This type of situation can also occur in technical analysis when the price of a security reaches the uppers limits of an indicator, usually in a short mount of time.
An Oversold situation can also occur in both fundamentally and technically based situations. An Oversold situation is when a security price falls below what is believed to be fair value. In technical analysis, an Oversold situation would occur when a security reaches the lower limits of certain indicators. In both situations (Overbought/Oversold) a reversal can occur in which Overbought securities will sell-off and Oversold securities may rise from lows.