Ultimate Oscillator Oil Technical Analysis and Ultimate Oscillator 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.

Ultimate Oscillator Oil Indicator Analysis in Oil Trading - ultimate Oscillator Oil Indicator Explained

This oil indicator uses 3 different n-number of candlesticks and calculates the combined weighted sums of 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).