Ultimate Oscillator: buying pressure over 7, 14 and 28 bars blended 4:2:1, from 0 to 100, with levels at 70 and 30.
Overview
The Ultimate Oscillator, by Larry Williams, mixes three time spans into one line from 0 to 100 in its own pane. Levels sit at 70 and 30.
Using several windows helps reduce the false signals one window can give.
How it works
Buying pressure (BP) = close - min(low, previous close). True range (TR) = max(high, previous close) - min(low, previous close). For each window, average = sum of BP / sum of TR.
UO = 100 x (4 x avg7 + 2 x avg14 + avg28) / 7.
How to use it
- Some traders watch readings above 70 or below 30.
- Look for divergence between UO and price, as in the original method.
- Use the 50 line to separate up and down pressure.
- Compare it with RSI to see how the blend changes signals.
These are ways some traders read it, for learning. They are not trade signals.
Settings
| Setting | Default |
|---|---|
| Settings | |
| Fast LengthBars in the fastest averaging window. Weighted 4 in the final blend, so it dominates the oscillator. | 7 |
| Middle LengthBars in the intermediate averaging window. Weighted 2 in the final blend. | 14 |
| Slow LengthBars in the slowest averaging window. Weighted 1 in the final blend. | 28 |
| OverboughtLevel above which the oscillator is considered overbought. | 70 |
| OversoldLevel below which the oscillator is considered oversold. | 30 |
| Style | |
| OscillatorColor of the line midway between the levels. Toward either level it blends into that level’s color. | #787b86 |
| LevelsColor of the overbought and oversold levels. | #787b86 |
| OversoldColor of the line at the oversold level and of the oversold zone shading. | #089981 |
| OverboughtColor of the line at the overbought level and of the overbought zone shading. | #f23645 |
Alerts
You can alert on its line crossing a value or the candle close (from the chart's + menu); checked while ZoroCharts is open.
Notes and limits
- Works on any symbol and timeframe; it only needs candle data.
- The fast window has the most weight.
- Williams' original method also looked for a divergence followed by a break of the oscillator's recent high or low.
Education only. Not financial advice. Indicators mark what happened on the chart; they do not predict what price will do. Trading futures, forex, crypto and other markets carries a high level of risk and may not be suitable for everyone.