Aroon Technical Analysis & Aroon Signals

Built and Made by Tushar Chande

This indicator is used to determine if a trading instrument is trending or not.

It is also used to reflect how strong the trend is.

Furthermore, it aids in pinpointing the inception of a new trend, which explains its nomenclature, signifying daybreak or the start of a cycle.

This indicator has 2 lines:

Aroon UP
Aroon DOWN

Aroon UP

The proportion of elapsed time from the commencement of a trading session until the highest price point attained by the asset during that specific interval.

Should the price achieve a new peak, the Aroon UP indicator will register 100, and it will remain fixed at this level for every subsequent new high recorded. However, if the price declines by a measurable percentage, that corresponding amount is deducted from the 100 value, causing Aroon UP to begin its descent. This implies that a sustained Aroon UP reading at 100 signifies the price is continually forming new highs, whereas a drop indicates a halt in new high generation.

If however price is making/forming new lows for a specified price period then Aroon UP will be at zero

Aroon - Aroon Technical XAU/USD Indicator - How Do I Place Aroon in Chart?

Calculation

Aroon Up measures the time from the period's start to its high.

If you use 10 price periods for the calculation:

Example 1: Highest price was a day ago

And if the highest price was reached yesterday, - one day prior

The price bar time is nine, which is one day less than.

9/10 in % terms = 90

Aroon UP will be at 90

Example 2: Highest price was 5 days ago

If the peak occurred 5 days ago then

10 price periods subtract 5 equals 5

5/10 in % = 50

Aroon UP will be at 50

Aroon DOWN

This is calculated the same as Aroon UP but this time using lowest point instead of highest point.

When a new low happens, Aroon DOWN is at 100: when a new high happens, it goes to zero.

Aroon - How Do I Place Aroon in Chart in Platform?

Gold Technical Analysis and How to Generate Trading Signals

This indicator checks market momentum at the 50% level.

Buy Signal & exit signal

Aroon UP surpassing 50 serves as a buy indicator.

An Aroon UP dip below the 50 mark signals an exit if a buy trade was initiated.

Sell XAUUSD Signal & exit signal

Aroon DOWN below 50 is a technical sell signal.

Aroon DOWN crossing above 50 serves as an exit signal if you have initiated a sell transaction.

Aroon - Aroon Strategies Buy & Sell Signal

Buy & Sell XAUUSD Signals

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