Technical indicators / Ultimate Oscillator

Determine the current True Low, TL. TL - is the lowest current minimum or the previous closing price.

TL (i) = MIN (LOW (i) || CLOSE (i - 1))

Calculate current Buying Pressure, BP is equal to the difference between the closing price and the True Low.

BP (i) = CLOSE (i) - TL (i)

Get the True Range, TR. This is the biggest difference of the current low and high; or current high and the previous closing price; previous closing price and the current low.

TR (i) = MAX (HIGH (i) - LOW (i) || HIGH (i) - CLOSE (i - 1) || CLOSE (i - 1) - LOW (i))

Count the sum of BP indicators for all time periods

BPSUM (N) = SUM (BP (i), i)

Compute the sum of TR indicators for all three time periods

TRSUM (N) = SUM (TR (i), i)

Identify the Raw Ultimate Oscillator, RawUO

RawUO = 4 * (BPSUM (1) / TRSUM (1)) + 2 * (BPSUM (2) / TRSUM (2)) + (BPSUM (3) / TRSUM (3))

Calculate Ultimate Oscillator, UO

UO = ( RawUO / (4 + 2 + 1)) * 100, where

MIN - minimum reading;

MAX - maximum reading;

|| - logical OR;

LOW (i) - lowest price of the current bar;

HIGH (i) - highest price of the current bar;

CLOSE (i) - closing price of the current bar;

CLOSE (i - 1) - closing price of the previous bar;

TL (i) - True Low;

BP (i) - Buying Pressure;

TR (i) - True Range;

BPSUM (N) - sum of BP readings for N period (N which is equal to 1 is i = 7 bars; when N = 2, i = 14 bars; when N = 3, i = 28 bars);

TRSUM (N) - sum of TR readings for N period (N which is equal to 1 is i = 7 bars; when N = 2, i = 14 bars; when N = 3, i = 28 bars);

RawUO - Raw Ultimate Oscillator reading;

UO - Ultimate Oscillator reading.