What is over brougt and over sold condition and what is significant
it is a condition arising out of money chasing the equity (flee float - the fixed amount of stocks available for trading)
money and equity is available in cash or derivative form. when we say more more money(cash+derivative put together) after the equity (beyond the equilibrium), the stock is said to be oversold and vice versa.
RSI is used as measure of gauging the oversold or overbought levels of a particular scrip/index/instrument
