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Indicator guide
Ultimate Oscillator: Three-Timeframe Momentum Explained
The ultimate oscillator is a momentum indicator developed by Larry Williams. It measures buying pressure against true range over three lookback periods, usually 7, 14 and 28 bars, and combines them with weights of 4, 2 and 1 on a scale from 0 to 100. It describes past prices and does not predict them.
In brief
What is the ultimate oscillator?
The ultimate oscillator combines short, medium and long buying-pressure averages into one 0 to 100 reading. Here is how it is built, with a worked example and its limits.
Key takeaways
- The ultimate oscillator divides buying pressure (BP) by true range (TR) over 7, 14 and 28 bars, then weights the three averages 4, 2 and 1.
- The result is scaled from 0 to 100 with the formula UO = 100 x (4 x A7 + 2 x A14 + A28) / 7.
- The sources use 30 and 70 differently: StockCharts and TradingView's indicator article use them as divergence conditions, TradingView's technical rating for UO reads above 70 as a buy and below 30 as a sell, and TradingView says the indicator should not be used alone.
- The 7-bar average carries the most weight. In the worked example, a 0.10 change in it moves the reading 5.7 points, against 1.4 points for the same change in the 28-bar average.
- The indicator describes past prices. It does not show where price will go, and this guide gives no win rates or test results.
Ultimate oscillator formula: buying pressure over true range
Larry Williams developed the ultimate oscillator (UO) in 1976, and it was featured in Stocks & Commodities magazine in 1985. StockCharts and TradingView both give these dates.
First, buying pressure (BP) is the close minus the lower of the current low and the prior close. Second, true range (TR) is the higher of the current high and the prior close, minus the lower of the current low and the prior close. Third, each average is the sum of BP over its period divided by the sum of TR over the same period. The final UO is 100 times the weighted sum of the three averages, divided by 7.
| Element | Definition or default | Where it is stated |
|---|---|---|
| Buying pressure (BP) | Close minus the lower of the current low or the prior close | StockCharts; TradingView |
| True range (TR) | Higher of the current high or the prior close, minus the lower of the current low or the prior close | StockCharts; TradingView |
| Average over n bars | Sum of BP over n bars divided by the sum of TR over n bars | StockCharts; TradingView; MetaQuotes code base |
| Periods | 7, 14 and 28 bars | StockCharts; TradingView; MetaQuotes code base |
| Weights | 4 for the 7-bar average, 2 for the 14-bar average, 1 for the 28-bar average; total 7 | StockCharts; TradingView |
| Scale | 0 to 100, with 50 as the centreline | MetaQuotes code base |
Formula checked against the cited sources on 10 November 2026.
Why three timeframes and weights of 4, 2 and 1
The indicator averages three windows instead of one, so the reading does not depend on a single lookback. The weights make the shortest window dominant. TradingView states that the design gives the most weight to the shortest time frame, which is the 7-bar average. The 14-bar and 28-bar averages move the reading more slowly.
Because the weights are fixed, a change in the 7-bar average moves the result more than the same change in the 28-bar average. The worked example below measures that effect. It is one reason to read the oscillator as a blend of recent and older pressure.
The indicator sits in the same family as Williams %R and the stochastic oscillator, which both compare a close with a recent range. The ultimate oscillator differs because it measures buying pressure against true range and blends three windows. True range is also the building block of the average true range measure.
Reading the 30 and 70 levels, and where sources differ
The sources checked use the 30 and 70 levels in different ways. StockCharts places them inside its divergence signals: the low of a bullish divergence should be below 30, so that prices are "somewhat oversold", and the high of a bearish divergence should be above 70, so that prices are "somewhat overbought". TradingView's indicator article gives the same two divergence conditions. TradingView's technical rating for UO is a separate rule that reads a value above 70 as a buy and below 30 as a sell. Its composite Oscillator rating includes UO as one of 11 inputs.
The MetaQuotes code base page is the third source. Its text reverses the StockCharts labels and says values below 30 correspond with the overbought zone, and values from 70 to 100 with the oversold zone. That is the opposite of the StockCharts wording, so this guide does not adopt it.
| Item | StockCharts | TradingView | MetaQuotes code base |
|---|---|---|---|
| Default periods | 7, 14, 28 | 7, 14, 28 | 7, 14, 28 bars |
| 30 and 70 levels | Divergence conditions: a bullish low below 30 ("somewhat oversold"), a bearish high above 70 ("somewhat overbought") | Indicator article: the same divergence conditions. Technical rating for UO: above 70 buy, below 30 sell, neutral between | Text labels the zones the other way round from StockCharts; this guide follows StockCharts |
| Centreline | 50 as the bull-bear centreline | Not stated | Centre is 50 |
| Other periods | Shortening to (4, 8, 16) "increased sensitivity"; longer periods to reduce sensitivity for high-volatility securities; (20, 40, 80) read as favouring bulls above 50 and bears below 50 | Parameters may need adjusting, because some instruments reach the levels too rarely or too often | Three periods can be set manually; no alternatives given |
Where the sources differ, this guide shows each version rather than picking one silently. Verified on 10 November 2026.
Worked example: from three averages to one reading
Example, one bar. Suppose the prior close is 50, the high is 52, the low is 49 and the close is 51. The lower of the low and prior close is 49, so BP is 51 minus 49, which is 2. The higher of the high and prior close is 52, so TR is 52 minus 49, which is 3. The bar's BP to TR ratio is 2 divided by 3, about 0.667.
Example, the final reading. This example uses averages that have already been calculated. Let the 7-bar average be 0.40, the 14-bar average 0.50 and the 28-bar average 0.60. The weighted total is 4 x 0.40, plus 2 x 0.50, plus 1 x 0.60, which equals 3.20. Dividing by 7 gives 0.457, and multiplying by 100 gives 45.7. Each average is shown as a percentage in the diagram.
Example, sensitivity. Raise the 7-bar average from 0.40 to 0.50 and leave the others unchanged. The weighted total rises by 0.40, to 3.60, so the reading becomes 100 x 3.60 / 7, or 51.4. That is a change of 5.7 points. The same 0.10 change in the 28-bar average would move the reading by only 1.4 points.
| Average | Bars | Weight | Average value | Weight x value |
|---|---|---|---|---|
| A7 | 7 | 4 | 0.40 | 1.60 |
| A14 | 14 | 2 | 0.50 | 1.00 |
| A28 | 28 | 1 | 0.60 | 0.60 |
| Total | 7 | 3.20 | ||
| UO = 100 x 3.20 / 7 | 45.7 |
EXAMPLE arithmetic with given averages, rounded to one decimal place. Not market data and not a signal.
Limits: what the ultimate oscillator does not show
- Past prices only. The oscillator is built from bars that have already printed. It cannot show what price will do next.
- Labels differ. The sources use the 30 and 70 levels in different ways, and one of them reverses the usual labels. A reading near a level does not show a trade.
- Divergence is one reading. A divergence describes a difference between price and the oscillator. It does not show when or whether price will move, and TradingView says the indicator should not be used as a stand-alone signal system.
- Inputs change the result. Different periods, bar intervals and data sources change the readings. Parameters may need adjusting for each instrument.
- No performance evidence here. This guide gives no win rates, back-test results or claims about accuracy for the indicator.
Risk disclosure
- The ultimate oscillator is calculated from past prices and does not forecast future prices.
- The sources use the 30 and 70 levels differently, and one reverses the usual labels. A reading near a level is not a trade decision.
- A divergence between price and the oscillator is one reading. It does not show direction or timing.
- Changing the periods, the bar interval or the data source can change the reading, so results will differ between charts.
- This page is educational and is not personal financial advice. Trading instruments can lose money.
RTX5 status
This guide explains the ultimate oscillator in general and does not describe an RTX5 feature. No RTX5 release record confirms which indicators, chart types or alerts the product includes. Its Windows desktop client is in preview, and the web and mobile clients are planned. A Google Play listing for Android is published, but the mobile client has no approved release record yet; check the product-availability record before relying on any RTX5 feature.
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Primary references
Sources were checked on 10 November 2026. They explain market rules and concepts; they do not certify RTX5 or provide individual financial advice.
StockCharts ChartSchool: Ultimate OscillatorSupports the buying pressure and true range definitions, the 7, 14 and 28 periods, the 4, 2 and 1 weights, the UO formula, the 1976 development date and 1985 Stocks & Commodities feature, the 50 centreline, the 30 and 70 divergence conditions with the "somewhat oversold" and "somewhat overbought" descriptions, the (4, 8, 16) "increased sensitivity" example, the longer periods for volatile securities and the (20, 40, 80) reading above or below 50. Checked 10 November 2026.TradingView support: Ultimate Oscillator (UO)Supports the same buying pressure, true range and average definitions, the default periods and weights, the statement that most weight goes to the shortest time frame, the Larry Williams 1976 attribution, the 1985 magazine feature, the divergence conditions below 30 and above 70, the note that parameters may need adjusting, and the caution against stand-alone use. Checked 10 November 2026.TradingView support: Technical RatingsSupports the UO rating entry: above 70 is a buy, below 30 is a sell, and between them neutral. The composite Oscillator rating includes UO as one of 11 inputs and states no 70 or 30 thresholds of its own. This is TradingView's rating rule, not a description of the indicator, and this guide does not use it as a signal. Checked 10 November 2026.MetaQuotes code base: Ultimate Oscillator indicator for MetaTrader 5Supports the three adjustable periods with defaults of 7, 14 and 28 bars, the RawUO and scaled UO formulas, and the 0 to 100 range with 50 as the centre. Its text reverses the overbought and oversold labels. This guide does not follow those labels. Checked 10 November 2026.RTX5 product availabilityRTX5 status record. Use it to check which RTX5 products and clients are live before relying on any feature.
Questions readers ask
What is the ultimate oscillator formula?
UO = 100 x (4 x A7 + 2 x A14 + A28) / 7, where A7, A14 and A28 are the sums of buying pressure divided by the sums of true range over 7, 14 and 28 bars. Buying pressure is the close minus the lower of the current low and the prior close. True range is the higher of the current high and prior close, minus that same lower value.
Who developed the ultimate oscillator?
Larry Williams developed the ultimate oscillator in 1976, according to StockCharts and TradingView. Both sources say it was featured in Stocks & Commodities magazine in 1985. TradingView adds that the weighting gives the most weight to the shortest time frame, which is the 7-bar average.
Are 30 and 70 buy and sell levels?
The sources checked use them differently. StockCharts and TradingView's indicator article use 30 and 70 as divergence conditions, and StockCharts describes a low below 30 as somewhat oversold and a high above 70 as somewhat overbought. TradingView's technical rating for UO treats a reading above 70 as a buy and below 30 as a sell. The MetaQuotes page labels the zones the other way round. None of these is a general rule.
Which periods should I use?
The default periods in the sources checked are 7, 14 and 28 bars. StockCharts says relatively docile securities may not reach overbought or oversold readings with the defaults, and shows that shortening to 4, 8 and 16 "increased sensitivity". For highly volatile securities it lengthens the periods instead, and it reads a 20, 40 and 80 setting against the 50 line. TradingView says parameters may need adjusting. Changing the periods changes every reading, and this guide gives no test of any set.
Is the ultimate oscillator a leading indicator?
No. It is calculated from price bars that have already printed. It can show how buying pressure compares with true range over three windows, but it cannot show future prices. TradingView states that the indicator should not be used as a stand-alone signal system, and a divergence between price and the oscillator does not show when or whether price will move.
Does RTX5 include the ultimate oscillator?
This guide does not describe an RTX5 feature, and no RTX5 release record confirms which indicators the product includes. RTX5 is Orrnn's trading terminal and broker-technology product. Its Windows desktop client is in preview, and the web and mobile clients are planned. A Google Play listing for Android is published, but the mobile client has no approved release record yet; check the product-availability record before relying on any RTX5 feature.
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