Overbought and oversold readings aren't as straightforward as they sound. But understood in context, they can provide traders some insight when making entry and exit decisions. If a trader's strategy is to buy low and sell high, any metric that flashes "overbought" or "oversold" would seem to offer the perfect signal. But taking those readings at face value can be risky—and expensive. The financial insruments listed here have been subject to extreme upward or downward pressure but are now showing signs of stabilization or trend reversal.