Ultimate Oscillator Technical Analysis & Ultimate Oscillator Signals

Originally developed and used to trade stocks and commodities markets.

This oscillator aims at striking a balance between leading signals & lagging signals given by the common technical indicators.

Leading - some indicators lead the market and give signals earlier than the optimum ideal time
Lagging - some trading indicators lag the market so far that half of the move is over before a trading signal gets generated.

This is the balance that this oscillator indicator aims to achieve, not to lead the market too much or lag the market too much - this way the oscillator indicator will always give a trading signal at the ultimate time, thus its title.

Ultimate Oscillator - How to Use Ultimate Oscillator on Chart

This indicator uses three different n-number of candles and calculates the combined weighted sums of price action from these candles & draws these values on a scale ranging from 0 to 100. Values of above 70 are regarded and considered to be overbought levels while values of below 30 are regarded and considered to be oversold levels.

The time periods used to calculate ultimate oscillator trading are 7 periods (short-term trend), 14 periods (intermediate term trend) & 28 periods (long term trend).