Ultimate Oscillator (7, 14, 28)

The Ultimate Oscillator (7, 14, 28) is a momentum oscillators indicator used in Skyrexio Strategy Builder for momentum analysis and overbought/oversold identification.

Introduction

The Ultimate Oscillator (7, 14, 28) is a multi-timeframe momentum oscillator that provides neutral directional bias for both LONG and SHORT opportunities. By incorporating three different timeframes (7, 14, 28 periods), it reduces false signals and provides comprehensive momentum analysis across multiple time horizons.

How Ultimate Oscillator Works

The Ultimate Oscillator was developed by Larry Williams to reduce false signals by incorporating three different timeframes (7, 14, 28 periods). It calculates buying pressure relative to true range across multiple periods.

• Multi-timeframe analysis - Combines short, medium, and long-term momentum for comprehensive signals • False signal reduction - Multiple timeframes filter out noise common in volatile markets • Trend confirmation - UO > 50 confirms bullish momentum, UO < 50 confirms bearish momentum • Breakout validation - UO extremes (>70 or <30) combined with price action confirm breakouts • Noise filtering - Three-timeframe approach reduces whipsaws and false signals

Multi-Timeframe Psychology: The Ultimate Oscillator combines short-term (7), medium-term (14), and long-term (28) momentum to create a comprehensive view of market pressure. This multi-timeframe approach helps filter out the noise that single-timeframe indicators often produce, providing more reliable signals by confirming momentum across different time horizons.

Key Characteristics

Attribute	Details
Category	Momentum Oscillators
Type	Multi-Timeframe Momentum Signal
Primary Use	Comprehensive momentum analysis
Timeframe	All timeframes supported (1m to 1M)
Confirmation	Volume, trend context, price action

Strategy Applications

🟢 LONG STRATEGY (Multi-Timeframe Oversold Recovery)

Ultimate Oscillator is neutral - use UO < 30 for LONG entries when multi-timeframe momentum indicates oversold conditions with potential upward reversal.

Base Entry Order (LONG)

Trigger Type: Once per bar close
Bar TF: 1H
First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 30

Additional Entry Orders (LONG)

Additional Entry 1: Multi-timeframe momentum confirmation
First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Cross Above
Second Condition: Value
Value: 50

AND

First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 35

OR

Additional Entry 2: Volume-confirmed momentum shift
First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Greater Than
Second Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Offset: 1

AND

First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

Take Profit Orders (LONG)

Rule 1: Exit condition - Multi-timeframe overbought
First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 70

OR

Rule 2: Exit condition - Momentum peak reversal
First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Cross Below
Second Condition: Value
Value: 50

AND

First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 65

OR

Rule 3: Exit condition - Volume momentum exhaustion
First Condition: Volume
Timeframe: 1H
Operator: Less Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

AND

First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 60

Stop Loss Orders (LONG)

Rule 1: Stop loss - Deeper multi-timeframe oversold
First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 20

OR

Rule 2: Stop loss - Momentum breakdown with volume
First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Cross Below
Second Condition: Value
Value: 30

AND

First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

OR

Rule 3: Stop loss - Trend breakdown confirmation
First Condition: Close Price
Timeframe: 1H
Operator: Cross Below
Second Condition: Exponential Moving Average (50)
Timeframe: 1H

🔴 SHORT STRATEGY (Multi-Timeframe Overbought Reversal)

Ultimate Oscillator is neutral - use UO > 70 for SHORT entries when multi-timeframe momentum indicates overbought conditions with potential downward reversal.

Base Entry Order (SHORT)

Trigger Type: Once per bar close
Bar TF: 1H
First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 70

Additional Entry Orders (SHORT)

Additional Entry 1: Multi-timeframe momentum confirmation
First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Cross Below
Second Condition: Value
Value: 50

AND

First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 65

OR

Additional Entry 2: Volume-confirmed momentum shift
First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Less Than
Second Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Offset: 1

AND

First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

Take Profit Orders (SHORT)

Rule 1: Exit condition - Multi-timeframe oversold
First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 30

OR

Rule 2: Exit condition - Momentum trough reversal
First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Cross Above
Second Condition: Value
Value: 50

AND

First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 35

OR

Rule 3: Exit condition - Volume momentum exhaustion
First Condition: Volume
Timeframe: 1H
Operator: Less Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

AND

First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 40

Stop Loss Orders (SHORT)

Rule 1: Stop loss - Extreme multi-timeframe overbought
First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 80

OR

Rule 2: Stop loss - Momentum breakout with volume
First Condition: Ultimate Oscillator (7, 14, 28)
Timeframe: 1H
Operator: Cross Above
Second Condition: Value
Value: 70

AND

First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

OR

Rule 3: Stop loss - Trend reversal confirmation
First Condition: Close Price
Timeframe: 1H
Operator: Cross Above
Second Condition: Exponential Moving Average (50)
Timeframe: 1H

Advanced Strategy Combinations

Multi-Timeframe Divergence Strategy

Setup

Enhanced Divergence Detection:

• Price: Makes new high/low

• Ultimate Oscillator: Multi-timeframe momentum fails to confirm

• Volume: Declining participation confirms divergence

• Confirmation: UO crosses 50 line in opposite direction

Execution

Entry: UO crosses 50 line with divergence confirmation Target: Previous swing levels Stop: UO breaks divergence pattern with volume

Triple Timeframe Confirmation Strategy

Setup Process:

1. Daily timeframe shows major trend direction

2. 4H Ultimate Oscillator confirms momentum alignment

3. 1H UO reaches extreme levels (>70 or <30)

4. Volume expansion supports the momentum shift

Execution:

• Base Order: 1H UO extreme levels with multi-timeframe alignment

• Additional: Volume-confirmed momentum acceleration

• Take Profit: Opposite extreme levels, momentum exhaustion

• Stop Loss: Multi-timeframe momentum breakdown

Ultimate Oscillator Breakout Strategy

Setup Process:

1. UO consolidates between 40-60 range

2. Price approaches key support/resistance levels

3. UO breaks above 70 or below 30 with volume

4. Price confirms breakout direction

Execution:

• Base Order: UO extreme breakout with volume confirmation

• Additional: Price breakout alignment with UO signal

• Take Profit: Previous swing levels, momentum exhaustion

• Stop Loss: UO returns to consolidation range

Risk Management Guidelines

Position Sizing

Strategy Type	Position Size	Conditions
LONG Strategy	Standard	UO < 30 with volume confirmation
SHORT Strategy	Standard	UO > 70 with volume confirmation
Divergence Plays	Increased	Clear multi-timeframe divergence
Breakout Strategy	Reduced (75%)	High volatility breakout conditions

Ultimate Oscillator Reliability Factors

High Reliability

✅ Clear extreme levels (>70 or <30) with volume ✅ Multi-timeframe momentum alignment ✅ 50-line crossovers with trend confirmation ✅ Divergence patterns with price action ✅ Volume expansion supports momentum

Low Reliability

❌ UO oscillating between 40-60 range ❌ Low volume on extreme readings ❌ Conflicting signals from trend indicators ❌ Choppy, ranging market conditions ❌ Mixed multi-timeframe signals

Best Practices

For LONG Strategies

1. Extreme oversold - Wait for UO < 30 before considering entries

2. 50-line confirmation - Use UO crossing above 50 for trend confirmation

3. Volume validation - Confirm extreme readings with volume expansion

4. Multi-timeframe alignment - Ensure higher timeframes support the signal

For SHORT Strategies

1. Extreme overbought - Wait for UO > 70 before considering entries

2. 50-line confirmation - Use UO crossing below 50 for trend confirmation

3. Volume validation - Confirm extreme readings with volume expansion

4. Multi-timeframe alignment - Ensure higher timeframes support the signal

Common Mistakes to Avoid

• Middle range trading - Entering when UO is between 40-60

• Single timeframe focus - Ignoring the multi-timeframe nature of the indicator

• Volume ignored - Missing volume validation of extreme readings

• Trend fighting - Trading against strong trends without confirmation

Market Conditions Analysis

Market Type	LONG Strategy Effectiveness	SHORT Strategy Effectiveness
Uptrend	🟢 High (multi-timeframe oversold bounces)	🔴 Low (against trend)
Downtrend	🔴 Low (against trend)	🟢 High (multi-timeframe overbought reversals)
Ranging	🟢 High (reliable extremes)	🟢 High (reliable extremes)
High Volatility	🟡 Medium (filter with volume)	🟡 Medium (filter with volume)
Low Volume	🔴 Low (wait for confirmation)	🔴 Low (wait for confirmation)

Related Indicators

Indicator	Relationship	Link
RSI	Single-timeframe momentum	RSI
Stochastic %K	Range-based momentum	Stochastic %K
Williams %R	Similar oscillator	Williams %R
Volume	Signal confirmation	Volume

Conclusion

Ultimate Oscillator provides multi-timeframe momentum signals that reduce false signals by combining three different time horizons. Success depends on understanding its comprehensive nature, proper extreme level identification, and volume confirmation.

Key Takeaways

• PRIMARY USE: Multi-timeframe momentum analysis for comprehensive signals

• SECONDARY USE: False signal reduction and noise filtering

• ALWAYS: Confirm extreme levels with volume and multi-timeframe alignment

• NEVER: Trade middle-range signals (40-60) without additional confirmation

Success with Ultimate Oscillator requires understanding its multi-timeframe nature and using it as a comprehensive momentum tool rather than a simple overbought/oversold indicator. The key is waiting for extreme levels with proper confirmation and respecting the 50-line as a trend bias indicator.

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