Ultimate Oscillator Trading Indicator Technical Analysis and Ultimate Oscillator Trading Signals
Originally developed & used to trade stocks and commodities markets.
This oscillator aims at striking a balance between leading signals and lagging signals given by the common trading indicators.
- Leading - some indicators lead the market & give signals earlier than the optimum time
- Lagging - some technical indicators lag the market so far that half of the move is over before a signal is generated.
This is the balance that the oscillator technical aims to strike, not to lead too much or lag too much - this way the oscillator technical indicator will always give a signal at the ultimate time, thus its name.
This indicator uses 3 different n-number of candles and calculates the combined weighted sums of price action from these candles and plots these values a scale ranging from 0 to 100. Values of above 70 are considered to be over-bought levels while values of below 30 are considered to be over-sold levels.
The time periods used to calculate the ultimate oscillator technical are 7 periods (short term trend), 14 periods (intermediate term trend) and 28 periods (long term trend).
Technical Analysis and How to Generate Signals
This XAUUSD technical indicator can be used in generating buy and sell signals using various methods.
Center line XAUUSD Cross Over Trade Signal
Buy Trading Signal - values above 50 centerline level
Sell Trade Signal - values below 50 center line level
Center line XAUUSD Cross Over Signal
Over-sold/Overbought Levels on Indicator
Overbought - levels above 70 - sell signal
Oversold - levels below 30 - buy signal
Divergence Gold
The oscillator can also be used to trade divergence trading signals, below is an example of a classic bearish divergence setup.
Technical Analysis
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