Example and method of the Aroon indicator, including its definition, formula, strategies, calculation, and its basic use in trading. Aroon Forex technical analysis indicator is like the Average Directional Movement Index ADX indicator, this indicator identify the trend strength, bullish and bearish trend. The Aroon Indicator has 2 lines , aroon up and aroon down. This indicator was introduced by Tushar Chandein 1995 to identify a new trend. The Aroon indicator is move between 0 and 100 and shown in percentage terms.
Aroon indicator, how to trade Aroon indicator in Forex, Aroon indicator signals explained in this article. Tushar describes the following trading signals :
1. If Aroon down under 50 signals that the bearish trend is weakening
2. If Aroon up under 50 indicates that the bullish trend is weakening
3. If Aroon down above 70 signals a strong bearish trend
4. If Aroon up above 70 signals a strong bullish trend
How to read Arron Indicator
1. Below zero signals a bearish trend
2. Above zero indicates a bullish trend
3. The farther Aroon indicator from the zero line , the stronger the trend
