Aroon Indices Indicator Indices Technical Analysis and Aroon Indicator Indices Trading Signals
Developed by Tushar Chande
This MetaTrader 5 stock indices indicator is used to determine if indices is trending or not.
It is also used to indicate how strong the indices trend is.
It is also used to identify the beginning of a trend, the name its name which means morning or dawn.
This MetaTrader 5 stock indices indicator has two lines:
- Aroon UP
- Aroon DOWN
Percentage of time between the start of a time period and the highest point that stock indexes price has reached during that period.
If stock indexes price sets a new high, Aroon UP will be 100 - for each new high it will stay at 100. However, if stock indexes 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 stock indexes price is making new highs but when it starts to move down then stock indexes price is not making new highs.
If however stock indexes price is making new lows for a particular stock indexes price period then Aroon UP will be at zero
Aroon UP is a percentage of time between stock indexes price period and highest point.
If you use 10 stock indexes price periods for calculation:
Example 1: Highest stock indexes price was 1 day ago
Then if the highest point was yesterday, i.e. 1 day before then
10 stock indexes price periods minus 1 day= 9
9/10 in percent terms = 90
Aroon UP will be at 90
Example 2: Highest stock indexes price was 5 days ago
If the highest point was 5 days ago then
10 stock indexes price periods minus 5 = 5
5/10 in percent = 50
Aroon UP will be at 50
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.
Indices Technical Analysis and Generating Indices Trading Signals
This MetaTrader 5 stock indices indicator uses the 50 % level to measure momentum of the trend.
Buy Indices Trading Signal and exit signal
Aroon UP above 50 is a technical buy indices trading signal
Aroon UP dipping below 50 is an exit signal if you had opened a buy indices trade.
Sell Indices Trading Signal and exit signal
Aroon DOWN below 50 is a technical sell indices signal.
Aroon DOWN rising above 50 is an exit signal if you had opened a sell indices trade.
Buy and Sell Indices Trading Signals