Momentum oscillator designed to capture momentum across 3 different time frames.
- Rises when buying pressure is strong.
- Falls when buying pressure is weak.
- Below 30 oversold
- Bullish when it crosses through 50 in upwards direction.
- Above 70 overbought
- When price trend is going up and ultimate oscillator is going down, its signalling a fall. (bearish divergence)
- When price trend is going down and ultimate oscillator is going up, its signalling a rise. (bullish divergence)