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Key Takeaways

Difficulty:Intermediate
Reliability:High
Category:momentum
Timeframes:4H, Daily, Weekly

Ultimate Oscillator

momentum📊 4H, Daily, Weekly

Larry Williams oscillator using three timeframes to reduce false signals.

Formula

Code
UO = 100 × [(4×Avg7) + (2×Avg14) + Avg28] / 7

Detailed Explanation

The Ultimate Oscillator uses three different timeframes to provide a more reliable momentum reading.

**Timeframes:** - Short: 7 periods (weight 4) - Medium: 14 periods (weight 2) - Long: 28 periods (weight 1)

Parameters

Short
Default: 7
Short period
Medium
Default: 14
Medium period
Long
Default: 28
Long period

📈 Bullish Signals

Bullish divergence with UO below 30, then breaks above divergence high

📉 Bearish Signals

Bearish divergence with UO above 70, then breaks below divergence low

Python Implementation

Ultimate Oscillator calculation

Python
import pandas_ta as ta
df['UO'] = ta.uo(df['high'], df['low'], df['close'], fast=7, medium=14, slow=28)

TradingView Pine Script

Try on TradingView
JavaScript
//@version=5
indicator("Ultimate Oscillator")
uo = ta.uo(high, low, close, 7, 14, 28)
plot(uo, "UO", color=color.purple)
hline(70, "Overbought")
hline(30, "Oversold")
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MT5 MQL5 Code

C++
// Custom implementation needed

Python Libraries

pandas-ta
Technical analysis
pip install pandas-ta

Common Mistakes

✗Trading overbought/oversold without divergence
✗Ignoring the multi-timeframe nature

Confirmation Signals

Price action
Volume
Trend lines

Best For

Divergence tradingReducing false signalsSwing trading

💡 Pro Tips

  • •Uses 3 timeframes for smoothing
  • •Divergences are the primary signal
  • •Less prone to false signals than single-period oscillators
Last updated: December 29, 2024

Educational Disclaimer

This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.

Learn More

Investopedia - Technical IndicatorsBabyPips - Technical IndicatorsMetaTrader 5 Docs

Frequently Asked Questions

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Williams %R

Momentum oscillator measuring overbought/oversold levels on a scale of 0 to -100.

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