Aroon Indicator
| The Aroon Indicator is a technical analysis tool that is used to determine changes in an asset's price trend, as well as to forecast how that trend will perform. The indicator also records the amount of time it takes for the price to rise or fall. The Aroon Indicator is a valuable tool for traders who want to get an idea of where the market is headed. By looking at the indicator, traders can see whether an asset is in an uptrend, downtrend, or sideways trend. They can also see how long the trend has been going on for, and how strong it is. The indicator is made up of two lines, the Aroon Up line and the Aroon Down line. The Aroon Up line is calculated by taking the number of days since the asset's price reached a new high, and dividing it by the total number of days in the period. The Aroon Down line is calculated in the same way, but using the number of days since the asset's price reached a new low. If the Aroon Up line is above the Aroon Down line, it means that the asset is in an uptrend. If the Aroon Down line is above the Aroon Up line, it means that the asset is in a downtrend. If the two lines are close to each other, it means that the asset is in a sideways trend. The Aroon Indicator can also be used to see how long a trend has been going on for. If the Aroon Up line is above 70, it means that the uptrend is strong and has been going on for a long time. If the Aroon Down line is above 70, it means that the downtrend is strong and has been going on for a long time. If the lines are below 30, it means that the trend is weak and may not last much longer. The Aroon Indicator is a helpful tool for traders who want to get an idea of where the market is headed. By looking at the indicator, traders can see whether an asset is in an uptrend, downtrend, or sideways trend. They can also see how long the trend has been going on for, and how strong it is. |
Share this glosssary
