If you're new to trading or actively day trading, mastering the Ultimate Oscillator (UO) with optimal settings can significantly enhance your ability to identify reliable trade signals.
This guide covers:
- Recommended UO settings for different trading styles
- How adjustments impact signal accuracy
- Pro tips for fast-moving markets like US stocks
🔧 Default Settings (7-14-28): Why They Work
Developed by Larry Williams, the UO combines three weighted timeframes to reduce noise:
- 7-period: Short-term momentum
- 14-period: Medium-term trend
- 28-period: Long-term smoothing
Ideal for:
✅ Swing trading
✅ Balanced market conditions
✅ Noise-filtered signals
🕒 Best Settings for Beginners
Stick to 7-14-28 because:
- Preconfigured in platforms like TradingView and MT4/MT5
- Balances responsiveness and reliability
- Minimizes false signals on 1H/4H charts
👉 Learn how to backtest these settings
⚡ Optimized Settings for Day Trading
For faster signals, try 5-10-20:
Best for:
- 5-min/15-min charts
- Scalping volatile stocks (e.g., TSLA, AMZN)
- Caution: Higher false signals—pair with Supertrend or MACD
🧠 How Settings Impact Performance
| Setting | Speed | Reliability | Best Use Case |
|-----------|----------|-------------|------------------------|
| 7-14-28 | Medium | High | Swing trading |
| 5-10-20 | Fast | Medium | Day trading/scalping |
| 10-20-40 | Slow | Very High | Long-term/EOD trading |
✅ How to Adjust Settings (Step-by-Step)
TradingView:
- Add UO indicator → Click gear icon
- Edit periods under Inputs → Save template
MT4/MT5:
- Right-click chart → Indicator Properties → Adjust values
🎯 Pro Tips for Success
- Always backtest new settings
- Combine UO with trend filters (e.g., EMA 50)
- Watch for divergence on 5m/15m charts
- Never trade UO signals alone—add confirmation!
👉 Master UO divergence strategies
FAQ
1. What’s the default UO setting?
7-14-28—a blend of short, medium, and long-term periods.
2. Can I use 5-10-20 for crypto?
Yes, but high volatility may require slower settings like 10-20-40.
3. Best timeframe for UO?
- Swing trading: 1H/4H
- Day trading: 5m/15m
4. Is UO suitable for long-term investing?
Yes—use extended periods (e.g., 14-28-56) on daily charts.
Final Takeaway:
- Beginners: 7-14-28 for stability
- Day traders: 5-10-20 with risk management
- Always validate signals with additional indicators
For deeper insights, explore our guides on Ultimate Oscillator Strategy and UO vs RSI comparisons.