Ultimate Oscillator Oil Technical Analysis and Ultimate Oscillator Oil Trading Signals
Originally developed and used to trade stocks & commodities markets.
This oscillator aims at striking a balance between leading signals & lagging signals given by the common indicators.
- Leading - some indicators lead the oil market and give signals earlier than the optimum time
- Lagging - some indicators lag the oil 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 oil indicator uses 3 different n-number of candlesticks and calculates the combined weighted sums of crude crude oil 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).
Crude Oil Technical Analysis & Generating Oil Trading Signals
This Oil technical indicator can be used in generating buy & sell oil signals using various methods.
Center line Crude Oil Trading Crossover Oil Trading Signal
Buy Oil Signal – values above 50 center line level
Sell Oil Trading Signal - values below 50 center-line level
Center line Crude Oil Trading Crossover Oil Trading Signal
Oversold/Overbought Levels on Crude Oil Indicator
Overbought - levels above 70 - sell crude oil trading signal
Oversold - levels below 30 - buy crude oil trading signal
Divergence Oil
The oscillator can also be used to trade divergence crude oil signals, below is an example of a classic bearish divergence signal.
Technical Analysis
