Aroon XAUUSD Indicator Technical Analysis and Aroon XAUUSD Indicator 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

Aroon UP

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

Calculation

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

Aroon DOWN

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