Ultimate Oscillator

The oscillator is a technical analysis oscillator developed by Larry Williams based on a notion of buying or selling "pressure" represented by where a day's closing price falls within the day's true range. An oscillator that attempts to combine information for several different time periods into one number. Three different time periods are used: 7, 14 & 28 days.

Williams had specific criteria for a buy or sell signal. A buy signal occurs when:

• Bullish divergence between price and the oscillator is observed, meaning prices make new lows but the oscillator doesn't
• During the divergence the oscillator has fallen below 30.
• The oscillator then rises above its high during the divergence, i.e. the high in between the two lows. The buy trigger is the rise through that high.