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.

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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 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 >>
  6. 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 >>
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