Ultimate Oscillator Commodities Technical Analysis and Ultimate Oscillator Trading Signals

Originally developed and used to trade stock & commodities markets.

This oscillator aims at striking a balance between leading signals & lagging signals given by the common indicators.

• Leading - some indicators lead the commodity market and give signals earlier than the optimum time
• Lagging - some indicators lag the commodity market so far that half of the move is over before a signal is generated.

This is the balance that the oscillator aims to strike, not to lead too much or lag too much - this way the oscillator will always give a signal at the ultimate time, thus its name.

This commodity indicator uses 3 different n-number of candlesticks and calculates the combined weighted sums of commodities price action from these candlesticks and plots these values a scale ranging from 0 to 100. Values of above 70 are considered to be overbought levels while values of below 30 are considered to be oversold levels.

The time periods used to calculate the ultimate oscillator are 7 periods (short term trend), 14 periods (intermediate term trend) & 28 periods (long term trend).

Commodity Technical Analysis & Generating Trading Signals

This Commodities technical indicator can be used in generating buy & sell commodity signals using various methods.

Center line Commodity Trading Crossover Trading Signal

Buy Commodity Signal - values above 50 center line level

Sell Commodity Trading Signal - values below 50 center-line level

Center line Commodity Trading Crossover Trading Signal

Oversold/Overbought Levels on Indicator

Overbought - levels above 70 - sell commodities trading signal

Oversold - levels below 30 - buy commodities trading signal

Divergence Commodities

The oscillator can also be used to trade divergence commodities signals, below is an example of a classic bearish divergence signal.

Technical Analysis