Ultimate Oscillator
The Ultimate oscillator was developed by Larry Williams in 1976 to capture momentum across three different timeframes to decrease the volatility and false transaction signals that are connected with many other indicators. The values of the indicator range from zero to 100. The overbought zone is located where the values are below 30 and the oversold zone is where the values are above 70. Calculation Step 1: Calculation of Buying Pressure (BP) to determine the general direction of price. BP = Close - Minimum (Low or Prior Close) Step 2: Measure Buying Pressure relative to the True Range (TR) to find the actual gain or loss. TR = Maximum (High or Prior Close) - Minimum (Low or Prior Close) Step 3: Calculate the average for each timeframe involved.
Step 4:
Signals Close long positions:
Sell:
Close short positions:
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