What does oversold mean?

I always here the market is oversold or overbought. What does that mean exactly? Does everyone have their definition for what oversold and overbought means? Thanks.

 

It's what buyers say to themselves to rationalize averaging down.

 

It is a zone where price can either carry on the existing trend or roll over and end it.

That is what it means.
However what value you place upon this piece of info is up to you.

 

I'm guessing that it can be related to the magnitude of the vix but I'm not that kind of trader.

 

It refers to Stocastics. Google it, go to ivestopedia and read up. Good to understand it.

 

Personally I never liked the terms over bought and oversold.

Generally they refer to an oscillator like stochastics, RSI or CCI that have gone above or below some arbitrary value.

In reality, to me at least, it refers to a market condition after a price move where there are, for the moment at least, no longer sufficient sellers or buyers willing or able to move prices further.

It can lead to a reversal or a consolidation then a reversal or a consolidation and then a continuation.