The ultimate oscillator is a theoretical concept in finance developed by Larry Williams as a way to account for the problems experienced in most oscillators ...UltimateoscillatorFromWikipedia,thefreeencyclopediaJumptonavigationJumptosearchTheultimateoscillatorisatheoreticalconceptinfinancedevelopedbyLarryWilliamsasawaytoaccountfortheproblemsexperiencedinmostoscillatorswhenusedoverdifferentlengthsoftime.[1]UltimateoscillatorTheoscillatorisatechnicalanalysisindicatorbasedonanotionofbuyingorselling"pressure"representedbywhereaday'sclosingpricefallswithintheday'struerange.Thecalculationstartswith"buyingpressure",whichistheamountbywhichthecloseisabovethe"truelow"onagivenday.Thetruelowisthelesserofthegivenday'stradinglowandthepreviousclose.bp=close−min(low,prevclose){\displaystylebp=close-\min(low,prev\,close)}Thetruerange(thesameasusedinaveragetruerange)isthedifferencebetweenthe"truehigh"andthetruelowabove.Thetruehighisthegreaterofthegivenday'stradinghighandthepreviousclose.tr=max(high,prevclose)−min(low,prevclose){\displaystyletr=\max(high,prev\,close)-\min(low,prev\,close)}Thetotalbuyingpressureoverthepast7daysisexpressedasafractionofthetotaltruerangeoverthesameperiod.Ifbp1{\displaystylebp_{1}}istoday,bp2{\displaystylebp_{2}}isyesterday,etc.,thenavg7=bp1+bp2+⋯+bp7tr1+tr2+⋯+tr7{\displaystyleavg_{7}={bp_{1}+bp_{2}+\cdots+bp_{7}\overtr_{1}+tr_{2}+\cdots+tr_{7}}}Thesameisdoneforthepast14daysandpast28daysandtheresultingthreeratioscombinedinproportions4:2:1,andscaledtomakeapercentage0to100.Theideaofthe7-,14-and28-dayperiodsistocombineshort,intermediateandlongertimeframes.UltOsc=100×4×avg7+2×avg14+avg284+2+1{\displaystyleUltOsc=100\times{4\timesavg_{7}+2\timesavg_{14}+avg_{28}\over4+2+1}}Williamshadspecificcriteriaforabuyorsellsignal.Abuysignaloccurswhen,Bullishdivergencebetweenpriceandtheoscillatorisobserved,meaningpricesmakenewlowsbuttheoscillatordoesn'tDuringthedivergencetheoscillatorhasfallenbelow30.Theoscillatorthenrisesaboveitshighduringthedivergence,i.e.thehighinbetwee