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Binary Options Indicator, Which will be discussed today, it was developed and is described by the trader Larry Williams. More in 1985 was written about him in the popular magazine Technical Analysis.

As the oscillator Ultimate Oscillator It tells us that the value of the asset is included in the overbought and oversold.

Here's how to set up the final oscillator live chart:



Indicator Technical Analysis It has the form of a curved line and is configured in a separate window below the chart. Line oscillator moves in the range of up to 0 100.

Calculate Ultimate Oscillator very very hard, so our happiness that the chart all the calculations are done automatically.

There are conditional 3 Zone Ultimate Oscillator:

- Overbought zone (above the level 70).

- Oversold zone (below 30).

- Prices corridor (from 30 to 70).

Signals Indicator UO:

- If the curve of the oscillator crosses mark 50 from the bottom up, it is a signal to the option CALL.

- If the curve of the oscillator crosses mark 50 from top to bottom, it is a signal to the option PUT.

- The detection of divergence (when the direction of motion of the oscillator and the price of the asset does not match), it is necessary to prepare for a reversal of the market and the opening of an option in the right direction.

Despite the fact that oscillators are one of the most popular trading instruments among traders not only in the currency market, but also in the stock market, they have one major drawback.

Oscillators in most cases seem to freeze on the border of one of the key zones. There, the line is consolidating in a chaotic direction, thereby generating a bunch of false signals and confusing even experienced traders.

Experienced pros have found a way out of this - they compare the indications of the indicators simultaneously on several timeframes, since for older ones such market noises are smoothed out. Others do several simultaneous stochastics with different periods.

This is the main advantage of Ultimate Oscillator. It is a successful synthesis of several types of oscillators at once. It represents just one line, which clearly shows the trend.

For comparison, apply on the same graph Stochastic with three periods 7, 14 and 28. It will show several waves that form the overall picture on the market.

Why exactly these numbers? The fact is that the creator of this indicator himself recommended setting the 7, 14 and 28 cycles in the settings. But they are not suitable for all timeframes. For trading on daily and longer-term intervals, I recommend changing the parameters to 5, 10 and 20.

Like all the other oscillators, I recommend besides classical signals to study the divergence. It represents one of the strongest trading signals that are handled successfully in 95% of cases.

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