Williams Ultimate Oscillator

The Ultimate Oscillator Williams is an oscillator of temporal evolution of prices developed by Larry Williams.

It uses the weighted sum of three oscillators, eachone with a different time period: the first for the short term, the second for the medium term and the third for the long term. The Ultimate Oscillator ranges between 0 and 100.

Larry Williams suggests using the three following time periods: 7 days for the short term, 14 days for the long term and 28 days for the long term.

Calculation

1. On the short term, we calculate the average of the "buying pressure", that is to say the difference between the closing price of the day and the lowest of the day and the lowest of the previous day.
2. It even calculates the average of the buying pressure on the medium and long term period.
3. Each average is calculated and divided by the average over the same period of the "True Range.
4. Finally, we calculate a weighted average of these three ratios obtained. The corresponding ratio in the short term is weighted by 4, the medium term by 2, and the long term by 1.

Example