Ultimate Oscillator
An oscillator combining buying pressure measured over three different lookback periods into a single weighted reading.
Formula
UO = 100 x (4 x Average7 + 2 x Average14 + 1 x Average28) / 7, where each Average is Buying Pressure / True Range over that period
Unit
%
In depth
The indicator was designed to address the fact that any single lookback period produces false signals at some horizon, by blending short, medium and long windows with weights of 4, 2 and 1. The weights sum to 7, which is what the denominator normalises. Combining three periods reduces sensitivity to any one parameter choice, which is a genuine methodological improvement over single-window oscillators. It remains a transformation of past prices and, like every indicator here, forecasts nothing.
Worked example
With period averages of 0.62, 0.55 and 0.48, UO = 100 x (4 x 0.62 + 2 x 0.55 + 1 x 0.48) / 7 = 100 x (2.48 + 1.10 + 0.48) / 7 = 100 x 4.06 / 7 = 58.0.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Ultimate Oscillator” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.