Ultimate Oscillator Forex Technical Trading Analysis Guide

Ultimate Oscillator Technical Analysis & Ultimate Oscillator Technical Signals

Originally developed and used to trade stock and commodities markets.

This oscillator aims at striking a balance between leading signals & lagging signals given by common indicators.

Leading - some indicators lead the market & give signals earlier than the optimum ideal time
Lagging - some trading indicators lag the market so far that half of the move is over before a signal is generated.

This is the balance which the oscillator trading aims to achieve, not to lead the market too much or lag the market too much - this way this oscillator will always give a signal at the ultimate time, thus its title.

Ultimate Oscillator - Ultimate Oscillator Technical Analysis - Ultimate Oscillators for Trading

This indicator uses three different n-number of candles and calculates the combined weighted sums of price action from these candlesticks & plots these values on a scale ranging from 0 to 100. Values of above 70 are regarded and considered to be overbought levels while values of below 30 are regarded and considered to be oversold levels.

The time periods used to calculate ultimate oscillator trading indicator are 7 periods (short term trend), 14 periods (intermediate term trend) and 28 periods (long-term trend).