Ultimate Oscillator

Discussion in 'Technical Analysis' started by aston, Feb 11, 2004.

  1. aston

    aston

    Hi,

    Anybody using Larry William’s Ultimate Oscillator would please share pros and cons ?

    Is it a momentum Oscillator and if yes how does it differ from MACD or Other momentum oscillators?

    Can it be considered a little more forgiving since it allows you to choose 3 different time periods as opposed to one for Stochastics, RSI, CCI etc. and thus take care of 3 different cycles in case if you are wrong about one cycle?

    Is there a web site or a forum or tutorial or a book that discusses it in more details?

    I would really appreciate any help.

    Regards
     
  2. Hi aston,

    I used google search engine and found the following...

    http://stockcharts.com/education/IndicatorAnalysis/indic_ultimate.html

    The below link shows the Metastock forumula (it can be backtested)...

    http://www.geocities.com/WallStreet/Floor/5645/scan3.html

    His book has info also...

    "THE DEFINITIVE GUIDE TO FUTURES TRADING--VOLUME II"

    NihabaAshi
     
  3. nkhoi

    nkhoi Moderator

    I have it on for awhile, it look and act no diff from any other indictors. It get discussed in his money tree course I think, 'been awhile since I bough the course.
     
  4. aston and nkhoi,

    I clicked on the link to show "Ultimate Oscillator in action" at Stockcharts...

    It popped up a daily chart of the Dow Jones Industrial Average and from a quick visual look at this indicator...

    I saw 5 bearish divergence signals and 4 of them would have produced profits based on how I trade.

    In addition...I saw 2 bullish divergence signals and both would have produced profits.

    Next...I change that Dow daily chart and put the MACD histogram and signal lines on the chart...

    In comparison...I got 1 bearish divergence signal...profitable...

    and 2 bullish divergence signals...both profitable.

    Therefore, based on the above info...the Ultimate Oscillator seems to be a lot more sensitive via producing more divergence signals on the Dow daily charts...

    This has caught my eye.

    Further...I love to trade divergence on the Eminis...

    Maybe next month or the following month...

    I'll play around with the Ultimate Oscillator for one month on the intraday charts and do more comparison to the MACD via some small size trades to see if it merits further analysis and possible integration into my divergence methodology.

    NihabaAshi
     
  5. chasmann

    chasmann

  6. nkhoi

    nkhoi Moderator


    sound like you had found your gold mine :D
     
  7. Is this the same oscillator found in Esignal?
     
  8. Buy when:

    1. a bullish divergence occurs in the UO. ok
    2. The UO falls below 30. ok
    3. The UO rises above the highest point reached during the span of the bullish divergence?

    Can anyone explain to me what 3. means.
     
  9. chasmann

    chasmann