Ultimate Oscillator (UO) – FX Replay Guide

The Ultimate Oscillator (UO) in FX Replay is a multi-timeframe momentum tool that blends short-, mid-, and long-term pressure readings to reveal true market momentum. It’s ideal for detecting hidden strength, reversal signals, and momentum divergence during your backtesting workflows.

How to Add It in FX Replay:

• Open the Indicators panel
• Search for “Ultimate Oscillator” or “UO”
• Apply it with default settings (7, 14, 28) or customize based on your time horizon

How to Use UO in FX Replay:

Momentum Zones:

• Above 70 → Overbought → prepare for potential reversals or manage longs tightly
• Below 30 → Oversold → watch for bounce opportunities
• Above 50 → Bullish bias zone → prioritize long trades
• Below 50 → Bearish bias zone → prioritize short trades

Entry Signals:

• Oversold Reversal: UO crosses back above 30 → potential long trigger
• Overbought Reversal: UO crosses back below 70 → potential short signal
• Confirm with price action, structure breaks, or session timing (e.g., NY open)

Divergence Detection:

• Bullish Divergence: Price makes lower lows, UO makes higher lows
• Bearish Divergence: Price makes higher highs, UO makes lower highs
• Use divergence near key zones like support/resistance or Fair Value Gaps (FVGs)

Strategy Filters:

• Integrate UO as a momentum confirmation filter
  • Only go long when UO > 50
  • Only short when UO < 50
• Great for filtering choppy or low-conviction setups during backtests

Pro Tip:

In FX Replay, use the Ultimate Oscillator as a momentum integrity check.
If price pushes into a breakout level but UO is declining or diverging, it can be an early warning to hold off or scale out.

Pair UO with:

• Supertrend → for directional context
• TEMA or SMMA → for structure filtering
• Liquidity sweep detection → for high-confluence entries