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Ultimate Oscillator

Trading Term

The Ultimate Oscillator combines the price action for three different time frames. You set the observations periods 1, 2, and 3 when you create the study. Time Frames:

  • true low = min(low or prev close)
  • buying pressure = close – true low
  • true range = max(high – low, high – prev close, prev close – low)

Buying pressure sum 1, buying pressure sum 2 and buying pressure sum 3 are calculated by adding up buying pressures for 3 different time frames. The same applies to the true range sum 1, 2 and 3.

raw ultimate oscillator = 4 * (buying pressure sum 1 / true range sum 1)

+ 2 * (buying_pressure_sum_2 / true_range_sum_2) + (buying_pressure_sum_3 / true_range_sum_3)

ultimate oscillator = raw ultimate oscillator / (4 + 2 + 1) ) * 100

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