Ultimate Oscillator Technical Analysis and Ultimate Oscillator 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 technical 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 market move is over before a signal is generated.

This is the balance that this technical oscillator indicator tries to strike, not to lead the market too much or lag too much - this way the oscillator indicator will always give a trading signal at the ultimate time, thus its title.

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 on 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 & How to Generate Signals

This XAUUSD indicator can be used in generating buy and sell signals using various methods.

Center line XAUUSD Cross Over Trade Signal

Buy Trading Signal - values/readings above 50 centerline level

Sell Trade Signal - values/readings 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 illustration of a classic bearish divergence setup.

Technical Analysis

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