Ultimate Oscillator

DEFINITION of 'Ultimate Oscillator'

A technical indicator invented by Larry Williams that uses the weighted average of three different time periods to reduce the volatility and false transaction signals that are associated with many other indicators that mainly rely on a single time period.

BREAKING DOWN 'Ultimate Oscillator'

This is a range-bound indicator, which means the value fluctuates between 0 and 100. Similar to the RSI, levels below 30 are deemed to be oversold, and levels above 70 are deemed to be overbought. Transaction signals are derived by finding situations where the price is going in opposite directions than the indicator. Once this divergence has been identified the trader will wait to confirm the transaction by using other technical indicators.

RELATED TERMS
  1. Williams %R

    In technical analysis, this is a momentum indicator measuring ...
  2. Dynamic Momentum Index

    An indicator used in technical analysis that determines overbought ...
  3. Signal Line

    A moving average plotted alongside a technical indicator and ...
  4. Confirmation

    The use of an additional indicator or indicators to substantiate ...
  5. False Signal

    In technical analysis, a false signal refers to an indication ...
  6. Ease Of Movement

    A technical momentum indicator that is used to illustrate the ...
Related Articles
  1. Insurance

    Exploring Oscillators and Indicators: Leading And Lagging Indicators

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com Indicators can be separated into two main types - leading and lagging - both differing in what they show users. Leading ...
  2. Insurance

    Exploring Oscillators and Indicators: Conclusion

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The goal of every short-term trader is to determine the direction of a given asset's momentum and to attempt to profit from ...
  3. Technical Indicators

    The Top Technical Indicators For Commodities Investing

    Traders can use "the usual suspects" (standard indicators for trend trading) when it comes to choosing indicators for investing in commodities. Here's how.
  4. Insurance

    Exploring Oscillators and Indicators: RSI

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The relative strength index (RSI) is another one of the most frequently used and well known momentum indicators in technical ...
  5. Trading Strategies

    Technical Analysis: Indicators And Oscillators

    By Cory Janssen, Chad Langager and Casey MurphyIndicators are calculations based on the price and the volume of a security that measure such things as money flow, trends, volatility and momentum. ...
  6. Technical Indicators

    Using Technical Indicators To Develop Trading Strategies

    Unfortunately, there is no perfect investment strategy that will guarantee success, but you can find the indicators and strategies that will work best for your position.
  7. Options & Futures

    The Top Technical Indicators For Options Trading

    Options traders have to pay attention to more indicators than your average stock trader does, including volatility, direction, and duration.
  8. Technical Indicators

    Overbought Or Oversold? Using The RSI To Find Out

    The Relative Strength Index is a technical indicator that measures the velocity and magnitude of changes in a stock’s price.
  9. Technical Indicators

    Overbought Or Oversold? Use The Relative Strength Index To Find Out

    The Relative Strength Index comes in handy when identifying areas that are potentially overbought or oversold.
  10. Forex

    Moving Average Flavors

    Get a better understanding of moving averages in this walkthrough.
RELATED FAQS
  1. Why is the Williams %R oscillator important for traders and analysts?

    Understand the technical momentum indicator Williams %R and how it is commonly utilized by traders and market analysts to ... Read Answer >>
  2. What is the Williams %R oscillator formula and how is it calculated?

    Learn the formula for calculating the Williams %R indicator, an oscillator similar to the stochastic oscillator, and the ... Read Answer >>
  3. What are the main differences between the Williams %R & Ultimate Oscillator?

    Read about the technical changes Larry Williams made to his trading tools, from the Williams %R oscillator to the Ultimate ... Read Answer >>
  4. What are the best technical indicators to complement the Ultimate Oscillator?

    Learn about the technical indicators traders use to complement trading with the Ultimate Oscillator indicator, including ... Read Answer >>
  5. What are the best technical indicators to complement the Williams %R oscillator?

    Learn about the Williams %R and which other indicators compliment this momentum oscillator in the creation of effective trade ... Read Answer >>
  6. What are the best ways to protect trade positions against false signals?

    Find out why it is important that traders learn to protect themselves against false signals, and read about some of the most ... Read Answer >>
Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  5. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  6. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
Trading Center