In order to truly understand all the differing perspectives of the market in a particular stock, it is important to take the time to look at several different timeframes of a chart. You need to change out the lens to get a broader view at times, but sometimes you need super granular focus as well.
To help illustrate this, I bring you the Weekly chart in $OSK:
This chart shows a defined range that has formed since December 2011 with the Bollinger Bands now starting to squeeze. Note the size of the 2 Volume at Price (VaP) bars in the range. Now let’s pull out to the Yearly chart to see what this action in 2012 can be summed up as:
All this volume at price action, just to form a silly Spinning Top candle.
It is fine for shorter term traders to play this $9 range, just be sure to remember what the long term traders see – and how they may trade based on their timeframe.