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").
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).
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.
Download the "UltimateIndicator" from the button below
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.
Related education and FX know-how:
Forex Education - Basics:
Free Forex eBooks:
Forex Education - FX Brokers:
Forex Education - Technical Analysis:
Forex Education - Money Management:
Forex Education - Psychology:
Forex Education - Others:
Forex Interbank Trading: