Technical Analysis Indicators: Aroon Oscillator

Technical Analysis Indicators: Aroon Oscillator…

Aroon Indicator (Aroon Oscillator)

♦ There are two lines in the Aroon indicator, orange and blue. The difference between these lines creates the Aroon Oscillator.

♦ If the orange line (Aroon Up) crosses the blue line (Aroon Down) upwards, this tells us that prices will rise.

♦ If the orange line crosses the blue line downwards, this tells us that prices will fall.

♦ If the orange line is 100, this tells us that the rise is strong and will continue for a long time.

♦ If the blue line is 100, this tells us that the decline is strong and will continue for a long time.

NOTE: The important level in the Aroon indicator is the zero line. Basically, when the graph of this oscillator goes above zero, it is a buy signal, and when it goes below zero, it is a sell signal.

Previous chapter: Technical Analysis Indicators: Accumulation Distribution Index (ADI)

First chapter: Investment and Technical Analysis

You can also look: TradingView