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Monday, 28 November 2022
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aroon-oscillator

aroon-oscillator

Watch the testing video here:

Aroon Oscillator Indicator

 

The Aroon Oscillator Indicator is a forex technical analysis tool. In fact, it is an oscillator that quickly finds out the trend stop and the start of a sideways trend in the horizontal interval, and vice versa. The formula for Aroon Oscillator is calculated as the difference between Aroon Up and Aroon Down. The signals provided by the Aroon Oscillator are pretty simple, and we suggest confirming them by some forex filter.

The Aroon Oscillator Indicator fits all kinds of timeframes and currency pairs. It is displayed in a separate window placed just below the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.

How does it work? How to apply in trading?

Trading Rules Explanation

The Aroon Oscillator indicates a strongly growing trend when the values of the Aroon Oscillator exceed 40 to 100. Conversely, a clearly declining trend is considered when the values of the Aroon Oscillator are dropping between -40 and -100.

Buy Signal

Follow these steps for a long trade:

  • Aroon Oscillator turns from negative to positive (from red bars to blue bars)
  • Price swings higher from recent low swing
  • Buy trade is triggered after the above conditions are met
  • Set stop loss a few pips below the last low point of the market
  • Take profit or exit trade whenever the Aroon Oscillator provides opposite signal or use your own method of trade exit

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