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. Dynamic Momentum Index

    An indicator used in technical analysis that determines overbought ...
  2. False Signal

    In technical analysis, a false signal refers to an indication ...
  3. Williams %R

    In technical analysis, this is a momentum indicator measuring ...
  4. Confirmation

    The use of an additional indicator or indicators to substantiate ...
  5. Demarker Indicator

    An indicator used in technical analysis that compares the most ...
  6. Ease Of Movement

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

    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.
  2. Trading

    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.
  3. Financial Advisor

    Relative Strength Index (RSI)

    Learn more about this technical momentum indicator that determines whether an asset is overbought or oversold.
  4. Trading

    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.
  5. Trading

    The Four Most Common Indicators in Trend Trading

    Here are the top indicators and tools trend traders use to establish when trends exist and find entry/exit points.
  6. Trading

    How To Use Technical Indicators To Master Financial Spread Betting

    As a popular tool of investing in the United Kingdom, spread betting encompasses the buying or selling of an underlying asset when a strike price is met.
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 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 >>
  3. 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 >>
  4. Why is the Ultimate Oscillator important for traders and analysts?

    Understand the thinking behind the design of the ultimate oscillator and learn the primary trading signals that it generates ... 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 main differences between Williams %R oscillator & The Relative Strength ...

    Learn about the Williams %R indicator and how this momentum oscillator differs from the relative strength index (RSI) both ... Read Answer >>
Hot Definitions
  1. Pro-Rata

    Used to describe a proportionate allocation. A method of assigning an amount to a fraction, according to its share of the ...
  2. Private Placement

    The sale of securities to a relatively small number of select investors as a way of raising capital.
  3. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  4. Backward Integration

    A form of vertical integration that involves the purchase of suppliers. Companies will pursue backward integration when it ...
  5. Pari-passu

    A Latin phrase meaning "equal footing" that describes situations where two or more assets, securities, creditors or obligations ...
  6. Interest Rate Swap

    An agreement between two parties (known as counterparties) where one stream of future interest payments is exchanged for ...
Trading Center