BITCOIN ULTIMATE OSCILLATOR

What is Bitcoin Ultimate Oscillator?

Bitcoin’s Ultimate Oscillator combines three views of where candles finish inside their recent movement ranges. Its default windows are 7, 14 and 28 candles, with greater weight on the shortest. The result sits on a 0–100 scale. Despite the name, combining windows does not make it a complete description of the market.Unlike a simple high-low position, each candle’s range also considers the previous close. This accounts for a jump between adjacent candles. For each window, the indicator adds the distances from the lower reference to each close, then divides by the sum of the corresponding ranges. It combines these three ratios only after calculating each window separately.

Identify the two ingredients

For each candle, the lower reference is the smaller of its low and the previous close. The upper reference is the larger of its high and the previous close. The first ingredient is close minus that lower reference; the second is upper minus lower, the true range. Their relationship describes how far through that full movement the candle finished.

Understand the three weights

The 7-candle ratio receives four parts, the 14-candle ratio two parts, and the 28-candle ratio one part. The final formula is 100 × (4 × short ratio + 2 × medium ratio + long ratio) ÷ 7. These windows overlap. Recent candles influence all three, so the three ratios are not independent votes.

Read the scale as a weighted position

Higher values mean closes tended to finish further above their lower references, relative to the measured ranges. Maketo uses 55 and above for Rising, 45 and below for Falling, and the space between for Mixed. A high reading does not measure actual buyer-initiated trade volume or establish how long a rise will last.

How Ultimate Oscillator is calculated

For each candle, buying pressure is close minus min(low, previous close). Sum pressure and true range over 7, 14 and 28 candles, then combine the three ratios with weights 4, 2 and 1. The page is published on Ultimate oscillator, long 28, medium 14, short 7. A period counts candles at the interval you choose, so the same setting covers a different stretch of time on a one-hour chart than on a daily one. How smoothing and missing candles are handled.

A calculation you can follow

These invented totals illustrate the weighting without listing all 28 candles. For one candle, suppose the previous close is $98,000, the low is $99,000, the high is $103,000, and the close is $102,000. The lower reference is $98,000, so the close-distance is $4,000 and true range is $5,000.Across the short window, suppose close-distances total $42,000 and ranges total $70,000. Its ratio is 0.60. Assume the medium totals give 0.50 and the long totals give 0.40.Weight those ratios: 4 × 0.60 + 2 × 0.50 + 0.40 = 3.80.Divide by the seven total weight parts and multiply by 100. The final value is approximately 54.29, within Maketo’s Mixed interval.The shorter window shows a higher closing position than the longer one, but the combined reading retains their context. Averaging the three percentages equally would give 50 and would be a different formula.

The 7/14/28 preset

The windows must increase from short to medium to long. Changing a length changes the included candles while the 4:2:1 weighting stays fixed. Increasing every length preserves the relative structure but smooths over a longer stretch of observations.

Candle interval

Three lookbacks on an hourly chart remain three hourly-candle windows. They are not a mixture of hourly, daily and weekly indicators. Switching the interval changes every underlying candle and all three lookbacks together.

Initial history and flat ranges

The longest default window needs 28 changes with known previous closes, requiring 29 consecutive candles. If an entire window’s total range is zero, Maketo assigns that window a neutral ratio of 0.5. Missing candles do not receive that treatment; they interrupt the calculation.

The formula’s distance is not observed demand

The distance from the lower reference is sometimes given a pressure-related name. It is calculated from prices, not measured orders or trade initiators. Two candles with identical price geometry produce the same ingredients even if their trading volumes differ greatly.

Sum first, then divide

A ratio of summed distances to summed ranges is not generally the same as an average of individual candle ratios. A candle with a wider range contributes more to the totals. Replacing this step with an equal average changes the indicator.

Three windows still share one price history

The longer windows reduce dependence on a single short lookback, but they cannot remove every misleading move. They also overlap heavily. Read disagreement among the windows as context rather than treating the combined number as three separate confirmations.

Ultimate Oscillator compared with RSI

RSI compares closing gains with closing losses. Ultimate Oscillator uses candle highs and lows as well as the previous close, then combines three windows. Their disagreement can show that closes are finishing high within wide candles even while close-to-close gains remain modest. Open Bitcoin RSI.

Does Ultimate Oscillator combine different candle timeframes?

No. It combines three lookback lengths on the selected candle interval. A 7/14/28 daily view uses only daily candles.

Why can it change when the latest close is unchanged?

The high or low can change the candle’s range, and old candles can leave one or more rolling windows. Both affect the weighted ratios.