Aroon Oscillator - how do you use it, and what technical signals should you look for?
Calculated from Aroon Indicator.
Calculation
The oscillator technical indicator is calculated by subtracting the Aroon DOWN from Aroon UP.
The Oscillator oscillates between -100 and +100, this is because both Aroon UP & Aroon DOWN moves between Zero and 100.
FX Analysis and How to Generate Signals
Buy Trading Signal
The Oscillator Technical Indicator gives a signal to buy when it goes above the zero line, and the further away from zero, the stronger the upward trend.
The indicator shows that the price is getting stronger if it continues to rise toward +100, but strength is fading if it nears the zero line.
Sell Trade Signal
When the Oscillator Indicator drops below the Zero line, it gives a signal to sell. The farther from zero, the stronger the downtrend is.
The trading tool shows price gaining power as it nears -100. It loses steam when heading toward the zero line.
Aroon Oscillator Sell Signals and Ways to Read the Indicator.
More Lessons:
- When is the Best Hours for Trading/Transacting GBPUSD FX Pair?
- William % R Indicator for MetaTrader 4
- Understanding Draw-down and Maximum Draw-down
- Introductory Lesson for Beginner Traders on Using the ADX XAU USD Indicator in MetaTrader 4
- How do I choose a good forex broker?
- How Do I Count Pips on MT4 for Small Account Small Trades?
- Using the ROC, or Rate of Change indicator, in MT4 for trading.
- Technical Analysis Using the DeMarks Range Projection Indicator for Stock Indices
- How Can I Add Nas100 in MT4 App?
- Presentation of a Defined Trading Strategy Example for the Wall Street 30 Stock Index.
