Aroon Indicator Expert Advisor Setup - Setting Up Aroon Indicator Expert Advisor

Aroon Indicator Expert Advisor Setup - Setting Up Aroon Indicator Expert Advisor - A trader can come up with an Aroon Indicator Expert Advisor based on the awesome indicator explained below.

Aroon Indicator Expert Advisor rules can be combined with other indicators to come up with other EA Robots that trade using rules based on two or more indicators combined to form a system.

Aroon Indicator Analysis and Aroon Indicator Signals

Created by Tushar Chande

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

It is also used to indicate how strong the market trend is.

It is also used to spot the beginning of a market trend, the name its name which means morning or dawn.

This indicator has two lines:

• Aroon UP
• Aroon DOWN

Aroon UP

Percentage of time between the start of a time period & the highest point that price has reached during that period.

If price sets a new high, Aroon UP will be 100 - for each new high it'll stay at 100. However, if price moves down by a certain percent, then that percentage is subtracted from the 100 & Aroon UP starts to move down. This means that if Aroon UP stays at 100 then price is forming new highs but when it starts to move down then price is not making new highs.

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

Calculation

Aroon UP is a percentage of time between price period and highest point.

If you use 10 price periods for calculation:

Example 1: Highest price was 1 day ago

Then if the highest point was yesterday, i.e. 1 day before then

10 price periods minus 1 day= 9

9/10 in percent terms = 90

Aroon UP will be at 90

Example 2: Highest price was 5 days ago

If the highest point was 5 days ago then

10 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 highest point.

When a new low is set Aroon DOWN is at 100 & when a new high is set it'll move to zero.

Forex Analysis & How to Generate Trading Signals

This indicator uses the 50 % level to measure momentum of the trend.

Buy Signal & exit Signal

Aroon UP above 50 is a technical buy signal

Aroon UP dipping below 50 is an exit signal if you had bought the currency.

Sell Signal & exit Trading Signal

Aroon DOWN below 50 is a technical sell signal.

Aroon DOWN rising above 50 is an exit signal if you had sold the currency.

Aroon Indicator Buy & Sell Signal Analysis