ultimate oscillator
Ultimate oscillator indicator was created by Larry Williams.
Ultimate oscillator is an indicator that is used to measure the price of momentum across three time frame,that is,7,14 and 28.
Ultimate oscillator indicator is based on divergence and oversold and overbought in the market.
Since it is an oscillation,it can be seen oscillating from 20 to 80.When the divergence occurs when the ultimate oscillator curve falls below 30,that will be an indication of bullish market thus the trader should close any sell position and enter a buy position since the market will start moving upwards while when the divergence occurs when the ultimate oscillator curve rises above 70,that will be an indication of a bearish market thus the trader should close any buy position and enter a sell position since the market will start moving downwards.This is indicated as from the candle sticks chart below
From the candle sticks chart above,there are 3 points,point A,B and C . Point C represents the ultimate oscillator curve while point A and B represents divergence above 70 and below 30 respectively.At point A divergence of the market has occurred when the ultimate oscillator is above 70 thus an indication of downward market reversal.This will signal the trader to close any buy position and enter a sell position since the market will start moving downwards at that point.On the other hand,at point B,divergence of the market has occurred when the ultimate oscillator is below 30 thus an indication of upward market reversal.This will signal the trader to close any sell position and enter a buy position since the market will start moving upwards at that point.
Ultimate oscillator is an indicator that is used to measure the price of momentum across three time frame,that is,7,14 and 28.
Ultimate oscillator indicator is based on divergence and oversold and overbought in the market.
Since it is an oscillation,it can be seen oscillating from 20 to 80.When the divergence occurs when the ultimate oscillator curve falls below 30,that will be an indication of bullish market thus the trader should close any sell position and enter a buy position since the market will start moving upwards while when the divergence occurs when the ultimate oscillator curve rises above 70,that will be an indication of a bearish market thus the trader should close any buy position and enter a sell position since the market will start moving downwards.This is indicated as from the candle sticks chart below
From the candle sticks chart above,there are 3 points,point A,B and C . Point C represents the ultimate oscillator curve while point A and B represents divergence above 70 and below 30 respectively.At point A divergence of the market has occurred when the ultimate oscillator is above 70 thus an indication of downward market reversal.This will signal the trader to close any buy position and enter a sell position since the market will start moving downwards at that point.On the other hand,at point B,divergence of the market has occurred when the ultimate oscillator is below 30 thus an indication of upward market reversal.This will signal the trader to close any sell position and enter a buy position since the market will start moving upwards at that point.
Comments
Post a Comment