What is Aroon Indicator? - Definition of Aroon Indicator
Aroon - Aroon indicators is a popular technical indicator that can be found on the - Indicators Listing on this website. Aroon is used by the traders to forecast price movement depending on the chart price analysis done using this Aroon indicator. Traders can use the Aroon buy and Sell Signals explained below to determine when to open a buy or sell trade when using this Aroon indicator. By using Aroon and other indicators combinations traders can learn how to make decisions about market entry and market exit.
What's Aroon Indicator? Aroon Indicator
How Do You Combine Indicators with Aroon? - Adding Aroon in MT4
Which Indicator is the Best to Combine with Aroon?
Which is the best Aroon trading indicator combination for?
The most popular indicators combined with Aroon are:
- RSI
- MAs Moving Averages Trading Indicator
- MACD
- Bollinger Band
- Stochastic
- Ichimoku Indicator
- Parabolic SAR
Which is the best Aroon combination for trading? - Aroon MT4 indicators
What Indicators to Combine with Aroon?
Get additional indicators in addition to Aroon that will determine the trend of the market price and also others that confirm the market trend. By combining indicators which determine trend & others that confirm the trend & combining these indicators with Aroon a trader will come up with a Aroon based system that they can test using a demo account on the MT4 software.
This Aroon based system will also help traders to determine when there is a market reversal based on the technical indicators signals generated & hence trade positions can know when to exit the market if they have open trades.
What is Aroon Based Trading? Indicator based system to interpret and analyze price & provides.
What is the Best Aroon Strategy?
How to Choose & Select the Best Aroon Strategy
For traders researching on What is the best Aroon strategy - the following learn trading courses will help traders on the steps required to course them with coming up with the best strategy for trading market based on the Aroon system.
How to Create Aroon Systems - Indicators Combination for Aroon
- What is Aroon System
- Creating Aroon System Template
- Writing Aroon System Rules
- Generating Aroon Buy and Aroon Sell Signals
- Creating Aroon System Tips
About Aroon Example Explained
Aroon Analysis & Aroon Indicator Signals
Developed and Created by Tushar Chande
This indicator is used to determine if a financial and trading instrument is trending or not.
It's also used to indicate how strong the trend is.
It is also used to identify the beginning of a trend, its name, which means dawn or morning.
This indicator has 2 lines:
- Aroon UP
- Aroon DOWN
Aroon UP
Percentage of time between the begin of a time period and the highest point which price has reached during that period.
If the 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 percentage, then that percentage is subtracted from the 100 and Aroon UP begins to move down. This means that if Aroon UP stays at 100 then price is forming new highs but when it begins to move down then price isn't making new highs.
If however price is making/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 & highest point.
If you use 10 price periods for the calculation:
Example 1: Highest price was a 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 percentage terms = 90
Aroon UP will be at 90
Example 2: Highest price was five days ago
If the highest point was 5 days ago then
10 price periods minus 5 = 5
5/10 in percentage = 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 the highest point.
When a new low is set Aroon DOWN is at 100 and when a new high is set it'll move to zero.
Forex Analysis & Generating Signals
This indicator uses the 50% level to measure momentum of the trend.
Buy Trading Signal and exit Signal
Aroon UP above 50 is a technical buy signal
Aroon UP dipping below 50 is an exit trading signal if you had bought the currency.
Sell Signal and exit Signal
Aroon DOWN below 50 is a technical sell signal.
Aroon DOWN rising and moving above 50 is an exit trading signal if you had sold the currency.
Aroon Analysis - Aroon Trading Indicator Buy and Sell Trade Signal Analysis
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