Ultimate Oscillator

Introduced by Larry Williams, the Ultimate Oscillator combines the price action for three different time periods which represent short, intermediate, and long term market cycles, into one number. Typically a 7-day period, a 14-day period, and a 28-day period are used. The oscillator moves between 0 and 100 with 50 as the center line. 70 and 30 represent overbought and oversold levels. Trading signals are also derived from divergence and a breakout in the Oscillator’s trend.

Ultimate Oscillator

Chart courtesy of Prophet Financial Systems (www.prophet.net)