Ultimate Oscillator

Want an oscillator with less volatility for more clarity? Look no further than the Ultimate Oscillator.

Besides being a carnival ride somewhere (probably), the Ultimate Oscillator is a technical oscillator that uses the weighted average of three time periods combined. It uses 7, 12, and 28-day periods, combining them into one awesome oscillator. It’s weighted so that the shortest time period is weighed the most, and the longest one weighed the least. The thought being: more recent = more relevant.

Averaging across multiple time periods creates an oscillator with less volatility. How do you read it? Well, it’s much easier now...just look for divergence signals when they come up, and let it help you decide whether it’s buy time or sell time.

Since the Ultimate Oscillator oscillates less than other oscillators, it’s also a bit quieter. There will be fewer divergences than you might be used to...but hey, that’s what you wanted, wasn’t it? Clarity. Sure-firedness. The Ultimate.