Ultimate oscillator
Combines short-, medium-, and long-term price momentum into one weighted reading, designed to reduce the false divergence signals that single-timeframe oscillators can give.
What the numbers mean
Three lookbacks — short, medium and long — combined into one reading, with the shortest weighted most heavily (4:2:1). Using three horizons at once is the design's purpose: it was built specifically to stop the false divergences that single-period oscillators produce when the chosen period does not match the market's rhythm.
- 7 — the short lookback, weighted ×4
- 14 — the medium lookback, weighted ×2
- 28 — the long lookback, weighted ×1
- 70 / 30 — the conventional extremes
- Three horizons at once is the design: it was built to stop single-period false divergences
How it is used
The intended signal is a specific sequence: bullish divergence against price, with the oscillator's divergence low above 30, followed by a break above the divergence high. Readings above 70 and below 30 mark the usual extremes.
- The full bullish signal: bullish divergence, the divergence low above 30, then a break above the divergence high
- Above 70 or below 30 → the usual stretched readings
- Because the conditions are strict, genuine signals are rare
How it relates to everything else
Larry Williams built this specifically because single-period oscillators such as RSI produce divergences that depend on the period chosen. Blending three horizons makes those artefacts cancel out, which is why its divergences are treated as more trustworthy — and why using it loosely as another 30/70 oscillator throws away its advantage.
- Designed to fix the false divergences of RSI and stochastics
- Fires rarely when used as designed; often when used loosely
- Weighting is 4:2:1, so the 7-period reading dominates the number
What to watch for
The full signal conditions are strict and rarely met, so used as designed it fires seldom. Used loosely as just another 30/70 oscillator, it loses the advantage it was built for.