The Ultimate Oscillator indicator is based on three momentum indicators of different periods: week, two weeks and three weeks.
It has five input parameters:
- First momentum period - first momentum calculation period
- Second momentum period - second momentum calculation period
- Third momentum period - third momentum calculation period
- Overbought - overbought level
- Oversold - oversold level
Calculation:
UltimateOsc = 100.0 * ((4.0*Avg1) + (2.0*Avg2) + Avg3) / (4+2+1)
where:
Avg1 = SumBP1 / SumTR1
Avg2 = SumBP2 / SumTR2
Avg3 = SumBP3 / SumTR3
SumBP1 - BP sum over the First momentum period
SumTR1 - TR sum over the First momentum period
SumBP2 - BP sum over the Second momentum period
SumTR2 - TR sum over the Second momentum period
SumBP3 - BP sum over the Third momentum period
SumTR3 - TR sum over the Third momentum period
BP = Close - Minimum(Low, PrevClose)
TR = Maximum(High, PrevClose) - Minimum(Low, PrevClose)
