Ultimate Oscillator
Combine short, medium, and long-term momentum into one powerful oscillator by Larry Williams.
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