Aroon XAUUSD Indicator XAUUSD Technical Analysis and Aroon XAUUSD Indicator XAUUSD Signals
Developed by Tushar Chande
This xauusd indicator is used to determine if a trading instrument is trending or not.
It is also used to indicate how strong the xauusd trend is.
It is also used to identify the beginning of a trend, the name its name which means morning or dawn.
This xauusd indicator has two lines:
- Aroon UP
- Aroon DOWN
Percentage of time between the start of a time period and the highest point that gold price has reached during that period.
If gold price sets a new high, Aroon UP will be 100 - for each new high it will stay at 100. However, if gold price moves down by a certain percentage, then that percentage is subtracted from the 100 and Aroon UP starts to move down. This means that if Aroon UP stays at 100 then gold price is making new highs but when it starts to move down then gold price is not making new highs.
If however gold price is making new lows for a particular gold price period then Aroon UP will be at zero
Aroon UP is a percentage of time between gold price period and highest point.
If you use 10 gold price periods for calculation:
Example 1: Highest gold price was 1 day ago
Then if the highest point was yesterday, i.e. 1 day before then
10 gold price periods minus 1 day= 9
9/10 in percent terms = 90
Aroon UP will be at 90
Example 2: Highest gold price was 5 days ago
If the highest point was 5 days ago then
10 gold price periods minus 5 = 5
5/10 in percent = 50
Aroon UP will be at 50
This is calculated the same as Aroon UP but this time using the lowest point instead of the highest point.
When a new low is set Aroon DOWN is at 100 and when a new high is set it will move to zero.
XAUUSD Technical Analysis and Generating XAUUSD Signals
This xauusd indicator uses the 50 % level to measure momentum of the trend.
Buy XAUUSD Signal and exit signal
Aroon UP above 50 is a technical buy xauusd signal
Aroon UP dipping below 50 is an exit signal if you had opened a buy xauusd trade.
Sell XAUUSD Signal and exit signal
Aroon DOWN below 50 is a technical sell xauusd signal.
Aroon DOWN rising above 50 is an exit signal if you had opened a sell xauusd trade.
Buy and Sell XAUUSD Signals