The Ultimate Oscillator is sensitive to buying and selling pressure and offers reliable signals.
Williams noted that the value of oscillators can vary greatly depending on the number of time periods used during the calculation. The Ultimate Oscillator, therefore, uses weighted sums of three oscillators which represent short, intermediate, and long term market cycles (7, 14, & 28-period). It is plotted as a single line on a vertical scale of 0 to 100.
The three oscillators are based on Williams's definitions of buying and selling "pressure."
Williams recommends that you initiate a trade following a divergence and a breakout in the Ultimate Oscillator's trend.
A Buy signal is offered when:
A Sell Signal is offered when:
Closing existing positions:
Please remember that, as with most indicators, these signals should be confirmed by other indicators before being acted upon.