AROON

Aroon

AROON is designed to show the beginning of a new trend.

INTERPRETATION:

AROON indicator consists of two lines, Upper Aroon and Lower Aroon.
  • If Upper Aroon and Lower Aroon are moving lower and are close by to each other, it means that no strong trend is apparent.
  • If upper Aroon slightly goes below 50, it is an indication that the current uptrend has lost its momentum. Vice versa in case of Lower Aroon.
  • If value in case of either Aroon is above 70 then it indicates strong trend, direction depends on which Aroon is above 70. If Upper then uptrend, if lower then downtrend.
  • If value in case of either Aroon is below 30, it is an indication that strong trend in the opposite direction is coming. So sign of possible reversal.

See Also: AROONOSC