Momentum oscillator
Ultimate Oscillator
Blends three timeframes into one oscillator to cut false signals.
What is Ultimate Oscillator?
The Ultimate Oscillator (UO), created by Larry Williams, is a momentum oscillator that combines short-, medium- and long-term periods into a single 0–100 reading, designed to reduce the false divergence signals that single-period oscillators produce.
How it works
By weighting buying pressure across three timeframes, the UO smooths out the noise that makes one-period oscillators give premature signals. Readings above 70 are overbought and below 30 oversold; its signature signal is a confirmed divergence within those zones.
How traders use it
- ▸Divergence: the UO's primary, multi-timeframe signal.
- ▸Overbought/oversold: the 70/30 extremes.
- ▸Confirmation: fewer false signals than single-period oscillators.
- ▸Filter: align with the higher-timeframe trend.
Build Ultimate Oscillator without code in Algovex
The Ultimate Oscillator is a node in Algovex, trade its divergence or extremes, backtest, and export. No code required.
Key parameters
| Parameter | What it does |
|---|---|
| fastLength | Short period (commonly 7). |
| midLength | Medium period (commonly 14). |
| slowLength | Long period (commonly 28). |
Frequently asked questions
Why use the Ultimate Oscillator over RSI?
The Ultimate Oscillator blends three timeframes to reduce the false divergence signals a single-period oscillator like RSI can produce. Some traders prefer it for divergence; others stick with RSI's simplicity. Algovex offers both.