The Ultimate Oscillator (Ultimate Oscillator), proposed by Larry Williams is calculated as weighted value of three Stochastic indicators, calculated for fast, middle and short periods. The periods ratio is selected as follows 1:2:4 (doubling) or 1:2:3. The periods depend on market. The recommeneded values are: 7-14-28 or 7-14-21.
Larry Williams recommend to open position after formation of divergence.
- The bullish divergence has appeared: the price at new minimum, the indicator is not at new minimum;
- During the bullish divergence formation the oscillator < 30;
- The oscillator grow higher than maximum level, achieved during formation of bullish divergence. It’s the best time to buy.
Close long positions:
- The Oscillator value achieved 50 and fall lower than 45;
- The oscillator value > 70 (in some cases it’s recommened to wait the fall to 70;
- Sell signal has appeared.
- The bearish divergence has appeared: the price at new maximum, the indicator is not at new maximum;
- During the bearish divergence formation the oscillator > 50;
- The oscillator fall lower the minimum level, achieved during formation of the bearish divergence.
Close short positions:
- Oscillator > 65;
- Oscillator < 30;
- Buy signal has appeared.
This indicator was first implemented in MQL4 and publised in Code Base 09.02.2007.
The indicator uses the classes from SmoothAlgorithms.mqh library, described in article “Averaging Price Series for Intermediate Calculations Without Using Additional Buffers”.
MT5 Indicator – Download Instructions
Ultimate Oscillator is a Metatrader 5 (MT5) indicator and the essence of the forex indicator is to transform the accumulated history data.
Ultimate Oscillator provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly.
How to install Ultimate Oscillator.mq5?
- Download Ultimate Oscillator.mq5
- Copy Ultimate Oscillator.mq5 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader 5 Client
- Select Chart and Timeframe where you want to test your indicator
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader 5 Client
- Right click on Ultimate Oscillator.mq5
- Attach to a chart
- Modify settings or press ok
- Indicator Ultimate Oscillator.mq5 is available on your Chart
How to remove Ultimate Oscillator.mq5 from your Metatrader 5 Chart?
- Select the Chart where is the Indicator running in your Metatrader Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
Click here below to download MT5 Indicator: