L oscillators I usually compare the price of a value with its price x periods ago. Larry Williams
realized that this kind of oscillators can vary greatly depending on the number of periods used in its calculation. Therefore, they developed the Ultimate Oscillator employs weighted sums of three oscillators, each of which uses a different time period .
The three oscillators are based on the definition gives Williams the "pressure" of buying and selling.
Interpretation
Williams recommends that you start an operation following a divergence and a break in the trend of the Ultimate Oscillator . The following summarizes these rules.
Buy when there is: bullish divergence.
This occurs when the share price at least my low mark is not confirmed by a lowest minimum in the oscillator. During the bullish divergence, the oscillator falls below 30. The oscillator then rises above the highest point reached during the stretch of bullish divergence. At this point is the time to buy.
Close long positions when : Conditions are for sale, or the oscillator rises above 50 and then falls below 45, or the oscillator rises above 70. (Sometimes it is appropriate to wait until after the oscillator falls below 70). Sell \u200b\u200bwhen a bearish divergence occurs.
occurs when the share price higher maximum marks that are not confirmed by higher peaks of the oscillator. During a bearish divergence, the oscillator rises above 50. The oscillator then falls below the lowest point reached during the stretch of bearish divergence. At this point you have to sell.
Close short positions when : Conditions are to be purchased, or the oscillator rises above 65, or the oscillator falls below 30. (Sometimes it is waiting for the oscillator rises again above 30).
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