Investor Education Story

Financial Indicator

Macroaxis News
  
By Nathan Young

October 17, 2017

There are a plethora of Oscillators on the market and one that is popular is the Ultimate Oscillator. This particular tool was created by Larry Williams in 1976 and the goal is to use multiple time frames in a way to eliminates what other tools may be missing. If you’ve noticed that many oscillators are quick to move and are not that smooth, which can bring mixed signals.

Ultimate Oscillator

The tool uses one line and it moves from 0 to 100, and there are several different ways to read the data points. First, there are the divergences, both bullish and bearish. A bullish divergence is simply when the market is creating lower lows but the oscillator is making higher highs. This could be indicating that a bullish divergence in near and the market may move. Using it in reverse works the same with higher highs on the chart and lower highs on the oscillator.




With any tool, it is important to understand what time frame works best for that tool. The Ultimate Oscillator can be used intraday all the way up to monthly. Understanding what fits your trading style is critical before implementing a tool in a live account. There are certainly many different oscillators out there and you have to find the one that is right for you. The benefits of this one are it tries to smooth out the tool, eliminating huge swings in the indicator. Check out the other resources here at MacroAxis if you need more ideas for your trading or investing plan.

About Contributor

Nathan Young
   Nathan Young is a Senior Member of Macroaxs Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States. View Profile
This story should be regarded as informational only and should not be considered as solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of FILTER. Please refer to our Terms of Use for any information regarding our disclosure principles.

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