The ultimate oscillator is an oscillator. It oscillates between oversold (30 or below) and overbought (70 or above). E,g, in an uptrend the price will finally meet heavy resistance so you have to use price action to identify that area plus a divergence (like price no longer making higher lows).  Ensure that the ultimate oscillator was overbought (above 70) and that it is going below level 50. But do not just jump in a put without setting up targets or making sure the support line or supporting trend line is broken. The opposite is of course for taking calls and examples of these can be seen in the video.