{"id":9383,"date":"2021-08-12T17:43:26","date_gmt":"2021-08-12T14:43:26","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=9383"},"modified":"2026-05-26T10:52:46","modified_gmt":"2026-05-26T07:52:46","slug":"trading-with-ultimate-oscillator","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2021\/08\/12\/trading-with-ultimate-oscillator\/","title":{"rendered":"Trading with Ultimate Oscillator"},"content":{"rendered":"\n

This overview is devoted to the working principles and trading signals<\/a> of Ultimate Oscillator. It was created and used by a successful market trader Larry Williams.<\/p>\n\n\n\n

<\/span>How does Ultimate Oscillator work?<\/span><\/h2>\n\n\n\n

Ultimate Oscillator is a technical indicator belonging to the group of normalized oscillators<\/a>. It was designed by the legendary market guru Larry Williams. Creating this indicator, he addressed the problem of false signals<\/a>, which is the issue of many other oscillators. To calculate the indicator, he used the weighted average of three oscillators with different periods.<\/p>\n\n\n\n

Hence, Ultimate Oscillator is calculated by not one but three different periods (original settings are 28, 14, and 7). Each one has its own “weight”. The largest one “weights” the most, as with the Exponential Moving Average<\/a> (EMA). Williams claimed that because of using several periods of different “weights”, the indicator becomes more stable in the face of false signals.<\/p>\n\n\n\n

Ultimate Oscillator assesses the current oversold\/overbought state of the asset and in trading is used quite similarly to other well-known oscillators: the Relative Strength Index<\/a> and the Stochastic Oscillator<\/a>. The overbought area gives signals to sell, while the oversold area gives signals to buy. In a prominent trend, try to use the indicator by the trend only.<\/p>\n\n\n\n

Ultimate Oscillator appears in a separate window under the price chart. The indicator looks like one main line fluctuating between 0 and 100. At 30 and 70, there are signal lines indicating the oversold (0 to 30) and overbought (70 to 100) areas.<\/p>\n\n\n\n

\"Ultimate<\/a>
Ultimate Oscillator in the chart window in the MetaTrader 4<\/a> terminal<\/em><\/figcaption><\/figure>\n\n\n\n

<\/span>Installing and setting up the indicator<\/span><\/h2>\n\n\n\n

To install the indicator to the MetaTrader 4<\/a> terminal, download the installation file by the link at the end of the article and copy it to the Indicators<\/a> folder. Via the Main Menu, go to Files\/Open Data Catalogue\/MQL 4\/Indicators. Copy the file o this folder and restart the terminal.<\/p>\n\n\n\n

Then Ultimate Oscillator will appear on the list of User indicators, and you will be able to add it to the price chart via Insert\/Indicators\/User\/Ultimate Oscillator. Or just left-click and drag it by the mouse from the Navigation window.<\/p>\n\n\n\n

In the Entry Parameters, you can set up the following characteristics of the indicator:<\/p>\n\n\n\n