Published On: Mon, Feb 25th, 2013

Ultimate Oscillator

The Ultimate Oscillator is a technical indicator.  It measures if a security is oversold or overbought in the market place.

The Ultimate Oscillator builds in a number of time periods to its calculations (usually three time periods.) The use of more than one time period has the effect of reducing inaccuracy due to volatility and signal noise.  The Ultimate Oscillator gives the signal that the security is overbought when the indicator has a level of 70 or above and a signal that the security is oversold when the indicator has a level of 30 or below.

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.