I have cover most of the points of "Price Action" in my blog. But I would like to put more thoughts in new Trader's mind that what is overbought and oversold market and recent with Recent example. Being "Overbought and Oversold" is not When an oscillator give you some reading above or below the predetermined values set by trader. But overbought and oversold situations are created by Market movers like "Institutions". And they often end up the traps and then Market Liquidation breaks is confirmed after that momentum which comes in late after first part of the move.
See the chart of Gbp/usd I have mentioned below with Recent Price Activity
I will more on that topic in the days to come because it is so necessary to confirm all the points before we need to take a look at these type of traps and not to use that setups and try to analyse every market as "Overbought" and "Oversold" Market.