Instant account opening
Site map
Български Čeština English Français Deutsch Italiano Polski Português Română Русский Slovenský Español Nederlands

InstaForex Client Area

  • Personal settings
  • Access to all InstaForex services
  • Detailed statistics and reports on trades
  • Full range of financial transactions
  • System of managing several accounts
  • Maximum data protection

InstaForex Partner Area

  • Full information on clients and commissions
  • Graphic statistics on accounts and clicks
  • Webmaster instruments
  • Ready-made web solutions and wide range of banners
  • High data protection level
  • Company's news, RSS feeds, and forex informers
Register account
cabinet icon

InstaForex – always at the forefront!Open a trading account and become a part of the InstaForex Loprais Team!

Success history of the team headed by Ales Loprais can become your success history! Trade confidently and head towards leadership like regular participant of Dakar Rally and winner of Silk Way Rally InstaForex Loprais Team does it!

Join in and win with InstaForex!

Instant account opening

Registration is not available for non-EU residents. Please, proceed to the website of the other member of the InstaForex group.
toolbar icon

Trading Platform

For mobile devices

For trading via browser


Determine the current True Low, TL. TL - is the lowest current minimum or the previous closing price.

TL (i) = MIN (LOW (i) || CLOSE (i - 1))

Calculate current Buying Pressure, BP is equal to the difference between the closing price and the True Low.

BP (i) = CLOSE (i) - TL (i)

Get the True Range, TR. This is the biggest difference of the current low and high; or current high and the previous closing price; previous closing price and the current low.

TR (i) = MAX (HIGH (i) - LOW (i) || HIGH (i) - CLOSE (i - 1) || CLOSE (i - 1) - LOW (i))

Count the sum of BP indicators for all time periods

BPSUM (N) = SUM (BP (i), i)

Compute the sum of TR indicators for all three time periods

TRSUM (N) = SUM (TR (i), i)

Identify the Raw Ultimate Oscillator, RawUO

RawUO = 4 * (BPSUM (1) / TRSUM (1)) + 2 * (BPSUM (2) / TRSUM (2)) + (BPSUM (3) / TRSUM (3))

Calculate Ultimate Oscillator, UO

UO = ( RawUO / (4 + 2 + 1)) * 100, where

MIN - minimum reading;

MAX - maximum reading;

|| - logical OR;

LOW (i) - lowest price of the current bar;

HIGH (i) - highest price of the current bar;

CLOSE (i) - closing price of the current bar;

CLOSE (i - 1) - closing price of the previous bar;

TL (i) - True Low;

BP (i) - Buying Pressure;

TR (i) - True Range;

BPSUM (N) - sum of BP readings for N period (N which is equal to 1 is i = 7 bars; when N = 2, i = 14 bars; when N = 3, i = 28 bars);

TRSUM (N) - sum of TR readings for N period (N which is equal to 1 is i = 7 bars; when N = 2, i = 14 bars; when N = 3, i = 28 bars);

RawUO - Raw Ultimate Oscillator reading;

UO - Ultimate Oscillator reading.

Trading Use

aking into account that Ultimate Oscillator is used for technical analysis and it fluctuates in the range from 0% to100%, the baseline of Ultimate Oscillator can be regarded as oversold/overbought indicator for the market. If the indicator demonstrates the reading above 70 level, the market is overbought and there will be a trend reversal soon. In case the indicator dropped below 30 level, it will be possible to observe prices growth soon.

It is necessary to consider so-called Gambler's Fallacy factor while using this kind of method based on Ultimate Oscillator (as well as any other technical oscillator).

Larry Williams suggested absolutely different approach when using this indicator, but it is very relevant for modern exchange markets now:

  • if there is bearish divergence amid price growth and the indicator falls below 50 level, it is necessary to open short positions. In case the price sinks below 30 level, close short positions;
  • if there is bullish convergence amid price drop and the indicator is above 50 level, open long positions. When the price overcomes 70 level, close long positions.
Ultimate Oscillator

InstaForex Ultimate Oscillator Parameters

fastperiod = 7

middleperiod = 14

slowperiod = 28

fastK = 4

middleK = 2

slowK = 1


Back to the list
You are now leaving, a website operated by INSTANT TRADING EU LTD