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.