Compensated Awareness Post View
Disclaimer
The Ultimate Oscillator can be used on intraday, daily, weekly or monthly charts. It is sometimes necessary to adjust the parameters to generate overbought or oversold readings, which are part of the buy and sell signals. Relatively docile stocks or securities may not generate overbought or oversold readings with the default parameters (7,14,28). Chartists need to increase sensitivity with shorter time frames. The chart for Boeing (BA) shows the Ultimate Oscillator (7,14,28) trading between 30 and 70 for six months. There were no overbought or oversold readings. Shortening the time frame to (4,8,16) increased sensitivity and generated at least six overbought or oversold readings. The opposite is true for securities with high volatility. It is sometimes necessary to lengthen the time frames to reduce sensitivity and the number of signals.
