Ultimate Oscillator Energies Technical Analysis & Ultimate Oscillator Trading Signals

Originally developed and used to trade stock and energies markets.

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

• Leading - some indicators lead the energies market and give signals earlier than the optimum time
• Lagging - some indicators lag the energies 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 energies indicator uses 3 different n-number of candlesticks and calculates the combined weighted sums of energies 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) and 28 periods (long term trend).

Energy Technical Analysis & How to Generate Trading Signals

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

Center line Energy Trading Crossover Trading Signal

Buy Energies Signal - values above 50 center line level

Sell Energies Signal - values below 50 center line level

Center line Energy Trading Crossover Trading Signal

Oversold/Overbought Levels on Indicator

Overbought - levels above 70 - sell energies trade signal

Oversold - levels below 30 - buy energies trade signal

Divergence Energies

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

Technical Analysis