wickra/docs/wiki/indicators/momentum/Indicator-UltimateOscillator.md

UltimateOscillator

Ultimate Oscillator — Larry Williams' momentum oscillator that blends three lookback periods into one bounded [0, 100] reading.

Quick reference

Field	Value
Family	Momentum
Sub-category	Bounded oscillators (0 … 100)
Input type	Candle (uses high, low, close)
Output type	f64
Output range	[0, 100]
Default parameters	(short = 7, mid = 14, long = 28) (Python)
Warmup period	max(short, mid, long) + 1
Interpretation	Weighted three-timeframe buying pressure; 50 is neutral.

Formula

true_low_t = min(low_t, close_{t−1})
BP_t       = close_t − true_low_t                       (buying pressure)
TR_t       = max(high_t, close_{t−1}) − true_low_t      (true range)
avg_n      = Σ BP over n / Σ TR over n
UO         = 100 · (4·avg_short + 2·avg_mid + avg_long) / 7

A single-timeframe momentum oscillator can show false divergences when its lookback does not match the swing being measured. The Ultimate Oscillator averages buying pressure over three windows and weights the fastest (4×) above the medium (2×) and slow (1×), which damps those false signals while keeping the response quick.

Parameters

Name	Type	Default	Valid range	Description
short	usize	7 (Python)	>= 1	Fast lookback (weight 4). 0 errors with Error::PeriodZero.
mid	usize	14 (Python)	>= 1	Medium lookback (weight 2).
long	usize	28 (Python)	>= 1	Slow lookback (weight 1).

The Python binding defaults the trio to (7, 14, 28) via #[pyo3(signature = (short=7, mid=14, long=28))]. Node and WASM take all three explicitly. The periods property returns (short, mid, long). UltimateOscillator::classic() is the conventional (7, 14, 28).

Inputs / Outputs

From crates/wickra-core/src/indicators/ultimate_oscillator.rs:

impl Indicator for UltimateOscillator {
    type Input = Candle;
    type Output = f64;
    // update(&mut self, input: Candle) -> Option<f64>
}

UltimateOscillator is a candle-input indicator: it reads high, low and close. In Python the streaming update accepts a 6-tuple or a dict; the batch helper takes high, low, close numpy arrays. Node and WASM expose update(high, low, close) and batch(high, low, close).

Warmup

warmup_period() == max(short, mid, long) + 1. The first bar has no previous close, so the first BP/TR pair forms on bar 2; the longest window must then fill, so the first non-None output lands on input max(short, mid, long) + 1.

Edge cases

• Pure uptrend. Bars that each close higher have BP == TR, so every ratio is 1 and UO saturates at 100 (pure_uptrend_saturates_at_100 pins this).
• Pure downtrend. Bars that each close lower have BP == 0, so UO is 0 (pure_downtrend_saturates_at_0 pins this).
• Flat market. Identical bars have zero true range; each window contributes the neutral ratio 0.5, so UO reads 50 (flat_market_reads_50 pins this).
• Bounds. The output is always within [0, 100] (output_stays_within_0_100 pins this).
• Candle validation. Candle::new rejects NaN/infinite fields, so update never sees an invalid bar.
• Reset. uo.reset() clears the previous close, the rolling window and all six running sums.

Examples

Rust

use wickra::{BatchExt, Candle, Indicator, UltimateOscillator};

fn main() -> Result<(), Box<dyn std::error::Error>> {
    let mut uo = UltimateOscillator::classic(); // (7, 14, 28)
    // 30 flat candles, each closing one tick higher than the last.
    let candles: Vec<Candle> = (0..40)
        .map(|i| {
            let p = 100.0 + f64::from(i);
            Candle::new(p, p, p, p, 1.0, i64::from(i)).unwrap()
        })
        .collect();
    let out = uo.batch(&candles);
    println!("warmup_period = {}", uo.warmup_period());
    println!("last = {:?}", out.last().unwrap());
    Ok(())
}

Output:

warmup_period = 29
last = Some(100.0)

Every bar closes higher with BP == TR, so UO saturates at 100. This matches the pure_uptrend_saturates_at_100 test in crates/wickra-core/src/indicators/ultimate_oscillator.rs.

Python

import numpy as np
import wickra as ta

uo = ta.UltimateOscillator()  # (7, 14, 28)
high = np.full(40, 100.0)
low = np.full(40, 100.0)
close = np.full(40, 100.0)  # perfectly flat market
print(uo.batch(high, low, close)[-1])

Output:

50.0

Node

const ta = require('wickra');
const uo = new ta.UltimateOscillator(7, 14, 28);
const flat = Array.from({ length: 40 }, () => 100);
console.log(uo.batch(flat, flat, flat).at(-1)); // 50

Interpretation

UltimateOscillator is read with the usual overbought/oversold lens — above 70 is stretched, below 30 is washed out — but Larry Williams' canonical signal is divergence with confirmation: price makes a new extreme while UO does not, then UO breaks the level of the divergence. The three-timeframe blend makes those divergences more reliable than a single-period oscillator.

Common pitfalls

• Feeding it scalar prices. It needs high/low/close; it takes a Candle, not an f64.
• Reordering the periods. The 4 / 2 / 1 weights assume short is the fastest window — keep short < mid < long. Any positive periods are accepted, but mis-ordering them inverts the intended weighting.

References

Larry Williams, "The Ultimate Oscillator", Technical Analysis of Stocks & Commodities (1985). The buying-pressure / true-range definition and the 4 / 2 / 1 weighting follow Williams' original.

See also

• Indicator-Stochastic.md — single-timeframe bounded oscillator.
• Indicator-Rsi.md — the canonical momentum oscillator.
• Indicators-Overview.md — the full taxonomy.