Indicator Description

ULTOSC (Ultimate Oscillator) is a momentum indicator that measures the strength of price momentum by calculating a weighted average of price momentum over three different time periods, helping to reduce false signals.

Function Information

• Function Name: ULTOSC
• Input Parameters:
  • High: Highest price
  • Low: Lowest price
  • Close: Closing price
• Parameter Settings:
  • timeperiod1: First period (default: 7)
  • timeperiod2: Second period (default: 14)
  • timeperiod3: Third period (default: 28)
• Output: ULTOSC value

Calculation Principle

ULTOSC is calculated using the following formula:

BP = Close - min(Low, Prior Close)
TR = max(High, Prior Close) - min(Low, Prior Close)
Average7 = Sum7(BP) / Sum7(TR)
Average14 = Sum14(BP) / Sum14(TR)
Average28 = Sum28(BP) / Sum28(TR)
ULTOSC = 100 * ((4 * Average7) + (2 * Average14) + Average28) / (4 + 2 + 1)

Where:

• BP is Buying Pressure
• TR is True Range
• Sum7/14/28 is the sum over 7/14/28 periods

Usage Scenarios

1. Overbought/Oversold Analysis
2. Trend Confirmation
3. Trading Signal Generation
4. Divergence Analysis

Usage Recommendations

1. ULTOSC > 70 indicates overbought conditions
2. ULTOSC < 30 indicates oversold conditions
3. Watch for 50-line crossovers
4. Pay attention to divergence patterns