The price (Green Line, Red and White) ranges inside the channel and out of the channel.
While you are inside the channel the trend is “safer” that if you are located outside of the channel (within the lines Orange).
Overbought applies when the price out of the top of the channel. crosses above Orange line. Bullish movement.
Oversold is when the price comes from the bottom crosses below the Orange line. Bearish movement.
The change of the color of the price, identifies whether the trend is still bullish Green, bearish Red and neutral White.