Designed by Larry Williams and first described in 1985. article for the magazine "Technical analysis of stock and commodity markets, the final oscillator combines the activity of market pricing tool for the three different time periods in a limited oscillator. The final values of the oscillator are from 0 to 100 with the center line at 50. Zone pereprodannosti is below 30 and perekuplennosti zone is in the range from 70 to 100.
The final oscillator uses three time periods as may be determined by the user. Usually used in the installation of 7 periods, 14 periods and 28 periods. Please note that all of the time periods imposed on each other, ie the time interval of 28 periods include the time period in 14 periods and the time period of 7 years. This means that activity in the shortest time interval used in the calculation three times and, consequently, has a greater impact on results.
Calculation
. Calculated present "The true minimum (TL)". TL = the lowest of the values of today's or yesterday's closing of the minimum.
. Calculated the current "buyers' pressure (BP)". BP = today's closing - present TL.
. Calculated present "True Range (TR)". TR = the greater of the values:
1). today's best - today at least;
2). current maximum - yesterday's closing;
3). yesterday's closing - at least today.
. Calculated BPSum1, BPSum2, and BPSum3, aggregating all the BP for each of the three specified time periods.
. Calculated TRSum1, TRSum2, and TRSum3, aggregating all the TR for each of the three specified time periods.
. Preliminary final value of the oscillator (RawUO) equals:
4 * (BPSum1/TRSum1) +2 * (BPSum2/TRSum2) + (BPSum3 / TRSum3)
. Total Value Final oscillator well:
(RawUO / (4 + 2 + 1)) * 100
The final oscillator can be used for intra-day, daily, weekly or monthly schedules. Provisional size and number of periods may vary according to desired sensitivity and the characteristics of specific market-based instruments.
It is important to remember that the perekuplennosti does not necessarily imply a signal to sell, and the pereprodannosti not necessarily imply a signal to buy. Market-based instruments can be found in the descending trend, to reach the state of pereprodannosti and resold to stay, as the price continues to develop top-down trend. As soon as the market-based instruments to state perekuplennosti or pereprodannosti, traders must wait for the price of turn signals. One method of improving the reliability of received signals may be in receipt of confirmation of the movement of the oscillator above or below the center line. Confirmation of the price spread can also be obtained using other indicators or aspects of technical analysis in conjunction with the final oscillators.
The schedule is Alcoa (AA), which was built with the final oscillators demonstrates some key points:
* Bear divergence formed long before reaching the peaks and preserved until a full turn of market instruments.
* Extreme values arise from the final oscillator is rare.
* Crossing the final oscillator central line (50) occurs relatively frequently.
* As usual, the confirmation of other signals typically increases the reliability of any analysis, including using the final oscillator.
The final oscillator uses three time periods as may be determined by the user. Usually used in the installation of 7 periods, 14 periods and 28 periods. Please note that all of the time periods imposed on each other, ie the time interval of 28 periods include the time period in 14 periods and the time period of 7 years. This means that activity in the shortest time interval used in the calculation three times and, consequently, has a greater impact on results.
Calculation
. Calculated present "The true minimum (TL)". TL = the lowest of the values of today's or yesterday's closing of the minimum.
. Calculated the current "buyers' pressure (BP)". BP = today's closing - present TL.
. Calculated present "True Range (TR)". TR = the greater of the values:
1). today's best - today at least;
2). current maximum - yesterday's closing;
3). yesterday's closing - at least today.
. Calculated BPSum1, BPSum2, and BPSum3, aggregating all the BP for each of the three specified time periods.
. Calculated TRSum1, TRSum2, and TRSum3, aggregating all the TR for each of the three specified time periods.
. Preliminary final value of the oscillator (RawUO) equals:
4 * (BPSum1/TRSum1) +2 * (BPSum2/TRSum2) + (BPSum3 / TRSum3)
. Total Value Final oscillator well:
(RawUO / (4 + 2 + 1)) * 100
The final oscillator can be used for intra-day, daily, weekly or monthly schedules. Provisional size and number of periods may vary according to desired sensitivity and the characteristics of specific market-based instruments.It is important to remember that the perekuplennosti does not necessarily imply a signal to sell, and the pereprodannosti not necessarily imply a signal to buy. Market-based instruments can be found in the descending trend, to reach the state of pereprodannosti and resold to stay, as the price continues to develop top-down trend. As soon as the market-based instruments to state perekuplennosti or pereprodannosti, traders must wait for the price of turn signals. One method of improving the reliability of received signals may be in receipt of confirmation of the movement of the oscillator above or below the center line. Confirmation of the price spread can also be obtained using other indicators or aspects of technical analysis in conjunction with the final oscillators.
The schedule is Alcoa (AA), which was built with the final oscillators demonstrates some key points:
* Bear divergence formed long before reaching the peaks and preserved until a full turn of market instruments.
* Extreme values arise from the final oscillator is rare.
* Crossing the final oscillator central line (50) occurs relatively frequently.
* As usual, the confirmation of other signals typically increases the reliability of any analysis, including using the final oscillator.
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