Ultimate Oscillator

What is Ultimate Oscillator?

Larry Williams created the Ultimate Oscillator to reduce false signals by combining three different timeframes (7, 14, 28 periods) into a single value.

• Ranges from 0 to 100
• Overbought: > 70
• Oversold: < 30
• Weights: 4× for 7-period, 2× for 14-period, 1× for 28-period

Trading Strategy

• Bullish divergence: Price makes lower low, UO makes higher low → Buy
• Bearish divergence: Price makes higher high, UO makes lower high → Sell
• Focus on divergence signals rather than overbought/oversold