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The Ultimate Oscillator indicator was developed by renowned investor Larry Williams. This indicator is a very unique oscillator in that it is characterized by a weighted average of short, medium and long term stochastic values.
Let's introduce how to use the Ultimate Oscillator and also you can download it for free at the bottom of the page (code-named "UltimateIndicator").
An example of displaying this indicator on the EURUSD hourly chart
When you trade with the Ultimate Oscillator ("UltimateIndicator"), it’s recommended to place a buy order when the following conditions are met (and vice versa for sell orders).
- Bullish divergence has occurred (Although a new price low may have occurred, the "UltimateIndicator" has not done the same)
- Indicator value fell below 30 during divergence
- Indicator exceeded the high during divergence
The case of the image below satisfies these conditions.
Although the low price has been followed lower by the Ultimate Oscillator at location A (see the chart), the low price has not been followed by the indicator in location B. The indicator value is below 30. The buy order will be placed at the point of D that exceeds the high price (C) during the divergence on the indicator.
Although the price continues to fall after placing a buy order, you can see that there is an uptrend on the left side of the chart. The trade will be done when “UltimateIndicator” exceeds 70 (E).
This is an example of trading with the "UltimateIndicator", but some people may find it a bit complicated. It is particularly unique where divergence is used as a prerequisite for entry.
You may also use it in combination with other indicators. Try it out to find the true value of the Ultimate Oscillator.
Compatibility: MT4
Parameters:
- fastperiod - The period used for fast stochastics calculation (7 is recommended)
- middleperiod - The period used for middle stochastics calculation (14 is recommended)
- slowperiod - The period used for slow stochastics calculation (28 is recommended)
- fastK - K line period of fast stochastics
- middleK - K line period of medium stochastics
- slowK - K line period of slow stochastics
Download the "UltimateIndicator" from the button below
Tip: Can’t open the downloaded archive file (ZIP or RAR)?
Try WinRAR for Windows or The Unarchiver for Mac .
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.
