Multi-timeframe momentum oscillator for identifying mean reversion opportunities when prices deviate from average. Combines short, medium, and long-term momentum into a single smoothed signal.
Developed by Ali Casey of https://StatOasis.com, the Ultimate Casey C% (UltimateC) is a momentum-based indicator based on (Casey C%) original indicator by Ali Casey.
It is designed primarily for identifying mean reversion opportunities—situations where prices significantly deviate from their average and are likely to reverse. Unlike traditional momentum indicators such as RSI, which measure momentum using fixed periods,
UltimateC uniquely integrates short, medium, and long-term momentum into a single, smoothed oscillator, providing clearer and more reliable signals.
Key Components and Parameters
• Lookback: Determines the short-term period for calculating momentum; shorter periods react quicker to recent price changes.
• Factor: Multiplies the Lookback to define medium and long-term periods; higher factors capture broader trends.
• SmoothLookback: Defines the smoothing period; higher values create a more stable but slower-reacting indicator.
Brief Calculation Steps
1. Rate of Change (ROC): Defines the smoothing period; higher values create a more stable but slower-reacting indicator.
2. Lookback Periods:
1. Short-term: Defined by the ‘Lookback’ parameter.
2. Medium-term: Calculated as ‘Lookback’ multiplied by ‘Factor’.
3. Long-term: ‘Lookback’ multiplied by ‘Factor’ squared.
3. Percentile Ranks (CaseyC): Determine the percentile rank of the current ROC within each lookback period’s historical ROC range.
4. Weighted Combination: Combine the CaseyC values, giving most weight to the short-term period and progressively less to medium and long-term periods.
5. Smoothing: Apply smoothing using the ‘SmoothLookback’ parameter to produce a stable oscillator.
How to interpret
The UltimateC oscillator ranges between 0 and 100, with a midpoint at 50:
• Above 50: Indicates bullish momentum.
• Below 50: Suggests bearish momentum.
• Extreme Values (near 0 or 100): Signal strong momentum shifts and potential reversals.
Traders commonly look for buying opportunities when UltimateC falls below 25 and selling opportunities when it rises above 75. For enhanced signal reliability, it’s advisable to use UltimateC in conjunction with price action or other trend-confirmation indicators.
Robustness and Testing
UltimateC has undergone extensive testing across numerous markets and conditions to ensure its reliability and stability. Detailed test methodology and results can be reviewed here: Watch Robustness Testing
Potential Limitations
UltimateC performs optimally in mean-reverting market conditions but may underperform in prolonged trending or low-volatility scenarios. As with all indicators, integrating broader market analysis enhances overall effectiveness.
Indicator Availability:
This indicator is implemented for MT4, MT5, TradeStation, and MultiCharts.
Using Custom Blocks for Conditions:
You can easily define your own conditions in StrategyQuant X using Custom Blocks. This allows you to set up parameters such as periods or steps to fine-tune the indicator to your strategy. For more detailed information, refer to the following resources:
You know me as clonex. I’m Ivan Hudec — I built the free blocks you’re using here, and I write about the research behind them at algotrading.space. Need something built? Work with me.
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Files
Snippet-UltimateCaseyCUltimateC.sqm20 KBLocked
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