Indicator Technical Analysis Aroon It can tell a lot of traders and trend direction and strength of the trend, and the pivot point value of the asset, and the condition of the flat.
Aroon working with time periods. Curve display dates back to a time when the established extreme.
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Aroon indicator It is represented by two lines: blue и Orange. The blue line is called Aroon Up (Aroon Up), and it shows how much of the last period of the previous daily high. The orange line is called Aroon Down (Aroon Down), and it shows how much of the last period of the previous day low.
If the curve Aroon Down rises to the level 70, Aroon Up and down to the level 30, we are seeing a downward trend. In contrast to the upward trend.
If you combine the two lines of the indicator, it is an oscillator. It calculates the difference and Aroon Down Aroon Up. Oscillator can move relative to the zero line in the range of up to + 100 -100.
The signals are easy to read display:
- If the oscillator is at a level 50 and higher, we are seeing an upward trend. And he's very strong. It is recommended that the option open CALL.
- If the oscillator is at -50 and below, we see a strong downtrend. It is recommended that the option open PUT.
- The movement of the oscillator at the level of the zero line indicates flat.
In order to achieve success in financial markets, you need to follow only three simple rules:
- strictly observe the management;
- follow your trading strategy and open trades exclusively within its business signals;
- learn to correctly identify the trend and the moments of its reversal.
The Aroon indicator perfectly copes with the last item. It is at the same time a trend indicator and an oscillator that is able to determine when the trend is reversing in the market. But, like all technical tools, Arun also has its advantages and disadvantages, since none of them can guarantee you a 100% result.
Advantages of LED Aroon:
- This indicator is intuitive, easy to learn, even for beginners, its signals are simply interpreted on any timeframe.
- with great accuracy allows you to determine the turn of the market trend to the opposite.
- Aroon indicator allows you to determine the strength of the current trend.
- high degree of reliability and accuracy.
Disadvantages indicator Aroon:
- Aroon is not available in all brokerage terminals. It needs to be additionally downloaded and installed either in the MT4 terminal, or it is possible to analyze the market according to the Live Graph.
- Sometimes it shows a delay, which is typical of most technical indicators.
In addition to the main types of signals described above, you can open trades on minor ones:
- The intersection of two movings together. But for signal accuracy, it is better to set a larger period on 21.
- The parallel movement of the indicator lines is one of the strongest signals. If orange is higher, then open trades for a fall. If the blue is higher, then it will increase.