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Ultimate Oscillator
Ultimate Oscillator
which the close is above the "true low" on a given day. The true low is
the lesser of the given day's trading low and the previous close.
bp = close – min(low,prv,close)
The true range (the same as used in average true range) is the
difference between the "true high" and the true low above. The true
high is the greater of the given day's trading high and the previous
close.
fraction of the total true range over the same period. If bp1 is
The same is done for the past 14 days and past 28 days and the
make a percentage 0 to 100. The idea of the 7-, 14- and 28-day
Williams had specific criteria for a buy or sell signal. A buy signal
occurs when,
The oscillator then rises above its high during the divergence, i.e. the
high in between the two lows. The buy trigger is the rise through that
high.
The position is closed when the oscillator rises above 70 (considered