Download: ULTIMATE.ELA
Category: Indicator > Miscellaneous
Description:
The Ultimate Oscillator indicator calculates the sums of the True Ranges of the number of bars specified by the inputs Avg1Len, Avg2Len and Avg3Len. These sums are divided into the sums of the distance from the close to the low. This value is weighted for the three lengths and plotted on the chart.
Usage:
Many analysts believe divergences between the Ultimate Oscillator as well as a breakout in the trend of the indicator are significant signals. For example, a bullish divergence is said to occur if market prices reach a new low but the indicator does not follow. Conversely, a bearish divergence is said to occur if market prices reach a new high but the indicator does not follow.
Inputs:
Avg1Len - Number of bars of data to be included in calculation of shortest average
Avg2Len - Number of bars of data to be included in calculation of intermediate average
Avg3Len - Number of bars of data to be included in calculation of longest average
EasyLanguage Code:
INPUT: AVG1LEN(7), AVG2LEN(14), AVG3LEN(28);
PLOT1(ULTIMATEOSC(AVG1LEN, AVG2LEN, AVG3LEN), "ULTOSC");