Figure 2: Price in a 3-month range

Lastly, we time our entries by using one of the many oscillators available such as Stochastic. The simplest way to interpret the Stochastic oscillator is to observe if the two lines move above 80% (Overbought) or below 20% (Oversold) on the 0-100% scale. When the Stochastic is overbought, there is a high chance for the price to decline. Similarly if the Stochastic is oversold, the probability of the price going up is higher.