The ultitimate oscillator indicator for MetaTrader4 was designed in 1976 by Larry Williams in the Technical Analysis of Stocks and Commodities magazine.
The ultitimate oscillator indicator is a momentum oscillator that tries to capture momentum through three different time frames, in so doing it avoids the drawbacks that are seen on other oscillators. A lot of momentum oscillators form bearish divergences upon experiencing continued strong advances in one direction.
The indicator tries to correct this anomaly by adding longer tie frames into the simple formula.
The indicator offers traders one of the straightforward means in which to gauge buying pressure. Strong buying pressures are defined by a rising Ultimate Oscillator, while weak buying pressures are defined by a falling Ultimate Oscillator.
The Ultimate Oscillator can be employed on intraday, 1-day, 1-week or monthly charts. There’s need for the trader to occasionally tweak the parameters in a bid to generate readings pertaining to overbought or oversold conditions, which obviously makes up the buy and sell alerts.
This is usually because somewhat inactive pairs may not yield overbought or oversold readings with default values.
The need to adjust the indicator’s parameters is largely due to the fact that some financial instruments do not possess sufficient price movement or volatility to yield overbought and oversold alerts. In other cases we find assets with enormous volatility yield overbought and oversold values too frequently.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (CountBars), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: momentum oscillator