What is the Ultimate Oscillator designed to combine?

The Ultimate Oscillator is specifically designed to combine the concepts of the Accumulation/Distribution (A/D) oscillator and the Relative Strength Index (RSI). This oscillator aims to address some of the weaknesses found in traditional momentum indicators by incorporating three different time frames.

By employing the A/D oscillator, the Ultimate Oscillator accounts for volume in its calculations, which helps ensure that the strength of a price move is validated by the underlying volume activity. Additionally, by including RSI concepts, the Ultimate Oscillator leverages momentum analysis, allowing traders to assess overbought or oversold conditions in the market.

This combination of volume and momentum through different time horizons enhances the reliability of price predictions, assisting traders in making more informed decisions. Hence, the connection of the Ultimate Oscillator to both the A/D oscillator and RSI concepts is essential for its functionality and purpose in market analysis.