Indicators of technical analysis give traders a lot of false signals. This is especially applied by such volatile assets as cryptocurrencies. To solve the problem, the final oscillator was invented.

What is the final oscillator

The final oscillator is a financial analysis tool, developed in the 1970s by American trader Larry Williams. For the first time, he was presented to the court of the general public in 1985 in the publication of Technical Analysis of Stocks & Commodities (“Technical Analysis of Promotions and Products”).

The name of the indicator turned out to be so due to the fact that its creator tried to get rid of the problem inherent in all indicators-many false signals that arose depending on the choice of the time period.

The final oscillator is designed to show the moments of the time when the pressure from the sellers weakens and when it intensifies. For its calculation, data from three periods are used at once.

Calculation of the final oscillator

The oscillator is based on two definitions: “Buying Pressure” and “True Range”. They are calculated by the formulas:

Buying Pressure = closing price of the current period is the minimum of the values of the current minimum and the closing price of the previous period.

True Range = maximum value from the maximum of the current period and the closing price of the previous one is the minimum value from the current minimum and the closing price of the previous period.

At the next stage, the so -called “total purchase pressure” is determined. It is calculated for three periods: in 7, 14 and 28 days. The formulas take the following view:

The total pressure of the purchase 7 = amount of Buying Pressure for 7 days/True Range amount for 7 days.

The total pressure of the purchase 14 = amount of Buying Pressure for 14 days/True Range amount for 14 days.

The total pressure of the purchase 28 = amount of Buying Pressure for 28 days/True Range amount for 28 days.

At the last stage, the final oscillator is calculated directly:

Final oscillator = 100 * (4 total purchase pressure 7 + 2 total purchase pressure 14 + Total purchase pressure 28)/7

Now manually calculations by the formulas will be carried out only by frank fans of mathematics. All modern trading platforms, where the final oscillator is available, is calculated automatically. Traders and investors will have to correctly interpret the received signals. By the way, what are the signals and what to do with them?

Bull signal

The bull signal supplied by the final oscillator consists of three components: divergence (discrepancies between the price and indicator), resellibility (reducing the indicator below level 30) and the subsequent growth of the indicator above its maximum during divergence.

For clarity, consider a real example.

He will take advantage of the daily SOLANA on the Bitstamp exchange. All March 2025, SOL cryptocurrency decreased in price. The fall lasted until April 7th. Nevertheless, the final oscillator sank into the resale zone on April 2. Thus, two of the three necessary conditions were implemented at once.
Firstly, from April 2 to 7, a divergence was observed between the price that fell and the indicator that grew (marked with yellow lines).
Secondly, the indicator has reached the resale zone. At this moment, it remained only to wait for the excess of the final oscillator of his maximum during divergence (41.87). This was done on April 9th. After that, Solana added 57.63%over the next 44 days.

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Source: TradingView.com

Bear signal

A bearish signal supplied by the final oscillator is the opposite of bull. Although there are also three components: bearish divergence, overhabitation (the growth of the indicator above 70) and the fall of the oscillator below its minimum during divergence.

For clarity, consider a couple of examples.

First, we will use the daily SUI schedule from the Bitstamp exchange. In July 2025, this cryptocurrency grew to its half -year maximums. The final oscillator entered the overlap zone for another 15th. Thus, the first necessary point of the bear signal was made. By July 28, the price continued its growth, but the indicator did not show new maximums. This was the second necessary point. The break in the minimum of the final oscillator (third signal) occurred on July 31. Two days later, SUI sank another 9.53%.

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Source: TradingView.com

Although the situations considered show that with the help of the final oscillator you can earn money, the indicator is not perfect. He, like any other, has his drawbacks.

The disadvantages of the final oscillator

As it was possible to verify the examples, the final oscillator gives confirming signals to the turn a little later than the bottom or top happens. Thus, if you trade exclusively with this indicator, part of the potential profit will be missed.

In addition, it must be remembered that the final oscillator is based on data on past prices. In this regard, the signals that the indicator will apply can often be false. Therefore, it is worth using the final oscillator in combination with other analytical tools. In addition, if the profit is put at the forefront, it is worth devoting a lot of time to tracking news regarding not only the crypto industry, but also the economic situation in the world and individual countries.

Conclusion

The final oscillator is a technical analysis tool proposed by an experienced trader 50 years ago. The name reflects the author’s desire to solve the problem of time during trade. However, it was not possible to fully achieve the goal. The final oscillator can be used in the trade of cryptocurrency, but it is better to do this in combination with other signals.

This material and information in it is not an individual or other other investment recommendation. The view of the editorial office may not coincide with the opinions of analytical portals and experts.