Ultimate Oscillator Metals Analysis & Ultimate Oscillator Trading Signals

Originally developed and used to trade metal and commodities markets.

This oscillator aims at striking a balance between leading signals & lagging signals given by the common indicators.

• Leading - some indicators lead the metal market and give signals earlier than the optimum time
• Lagging - some indicators lag the metal market so far that half of the move is over before a signal is generated.

This is the balance that the oscillator aims to strike, not to lead too much or lag too much - this way the oscillator will always give a signal at the ultimate time, thus its name.

This metals indicator uses 3 different n-number of candlesticks and calculates the combined weighted sums of metals price action from these candlesticks and plots these values a scale ranging from 0 to 100. Values of above 70 are considered to be overbought levels while values of below 30 are considered to be oversold levels.

The time periods used to calculate the ultimate oscillator are 7 periods (short term trend), 14 periods (intermediate term trend) & 28 periods (long term trend).

Metal Analysis & Generating Trading Signals

This Metals technical indicator can be used in generating buy & sell metal signals using various methods.

Center line Metal Trading Crossover Trading Signal

Buy Metals Signal - values above 50 center line level

Sell Metals Signal - values below 50 center line level

Center line Crossover Trading Signal

Overbought/Oversold Levels on Indicator

Overbought - levels above 70 - sell metals trading signal

Oversold - levels below 30 - buy metals trading signal

Divergence Metals Trading

The oscillator can also be used to trade divergence metal signals, below is an example of a classic bearish divergence signal.

Technical Analysis