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Aroon Up & Down
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Aroon Up & Down indicator, developed by Tushar Chande in 1995, is the indicator that allows you to anticipate changes in prices movement.

«Aroon» means “dawn's early light” in Sanskrit and Chande chose this name to identify the beginning of a new trend.
Aroon indicator is constructed on the grounds numbers of periods that have passed since the introduction of the minimum and maximum values within a time range. It allows you to determine price fluctuations in the market (the beginning of change from trend to side).


Definition of Aroon indicator

Aroon Indicator consists of two lines, 'Aroon (up)' and 'Aroon (down)'. These lines measure   the number of periods elapsed since the time of the emergence of a maximum or minimum.
Aroon Up (Blue line) measures the number of periods since the advent of day high maximum.
Aroon Down (Red line) measures the number of periods since the advent of day low minimum.

Aroon Up & Down MT4 indicator

Aroon Up & Down MT4 indicator - identifying local peaks and minimum on the charts to which it is connected. Aroon provides a buy and sell signals of currency pairs when they climb off the bottom or falling from the top. Crossing lines show a good signal for a fixed profit or minimum loss.

 

Aroon Up & Down

Aroon Period (default = 14) – period in bars, on which it will seek peaks and minimum. The higher period, the more smooth lines and the less period, the more signals are generated.

Aroon signals

There are three signals in the analysis of Aroon indicator on which you should pay attention:

- Achievement the extreme values of 0 and 100;
- Parallel movement between the lines Aroon Up and Aroon Down;
- Crossing of lines Aroon Up and Aroon Down.


Buy signal:
If Aroon Up line is in the range between 70 and 100, while Aroon Down line is between 0 and 30.


Aroon Up & Down

 

Sell signal:

If Aroon Down line is between 70 and 100, while Aroon Up is between 0 and 30. It is strong signal to bearish trend.


Aroon Up & Down

 

Consolidation

Consolidation - Parallel movement. When Aroon Up and Aroon Down lines move to some extent in parallel, in the same level, then this is evidence of consolidation.



Consolidation

Crossing lines.

Aroon Up & Down

 
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