An oscillator is a technical analysis indicator that creates high and low bands between two extreme values and then displays lines that oscillates between these two areas. Oscillators are trend indicators that are used by traders to identify short-term overbought or oversold positions. Technical analysts interpret information as overbought or oversold depending on the oscillator's value's proximity to either extreme values. When the oscillator's value is close to being oversold, it points to a potential buying opportunity. When the oscillator's value is close to being overbought, it points to a potential selling opportunity.
The market has been range bound for the last few weeks with volatility on the decline, and earnings all over the place. So where to go to look for a trade? Nike has already had Earnings and is near a low of the year, so seems like a good option. As a contrarian that can mean only one thing to me: I have to make a trade with the assumption it will go up from here over the next 45ish days. We will do that by making a Long Call Vertical trade to bet that it starts to head up over the next couple months. For more on my trading and how to join me in real time, see below. Watch the video to get the details. Kal Trading Risk Disclaimer All the information shared in this video is provided for educational purposes only. Any trades placed upon reliance of SharperTrades.com are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, commodities, options and forex, there is also substantial risk of loss. All tr