Ultimate Oscillator

Overview

The Ultimate Oscillator was introduced by Larry Williams in 1976. His complaint was specific: single-period oscillators like RSI and Stochastic generate too many false divergence signals, because any given period of noise can accidentally form a pattern that looks like a real divergence.

Williams' solution was bold in its directness — combine buying pressure from three different timeframes into a single weighted reading. The result sits on a familiar 0–100 scale and looks like RSI from a distance, but inside, three timeframes are voting at once. A signal that one timeframe might fake is far harder to fake across all three simultaneously. That implicit committee is the essence of the indicator.