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Ultimate Oscillator
A momentum oscillator that combines buying-pressure calculations across three different timeframes into one weighted reading.
The Ultimate Oscillator, developed by Larry Williams, combines a buying-pressure calculation across three different timeframes (commonly short, medium, and long) into a single weighted reading, with the longer timeframes given greater weight.
This multi-timeframe combination is specifically designed to reduce the false divergence signals a single-timeframe oscillator can give, since a genuine momentum shift is more likely to show up consistently across multiple timeframes at once. See Kaavon's dedicated Ultimate Oscillator article for the full calculation.
Examples
- The Ultimate Oscillator's multi-timeframe design is specifically intended to reduce false divergence signals that a single-timeframe oscillator like RSI can produce.
- The Ultimate Oscillator weights its longer-timeframe component more heavily than its shorter-timeframe components.