trader4ever
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here a modification that makes AROON clearer for me at least.
AROON is a different way to plot 2 moving averages:
one based on the lows and one bases on the highs.
You can adjust the period to suit your needs.
AROON let you see at a glance if:
1-in an uptrend you get higher highs and higher lows.
you'll see the green thick line at the very top of oscillator and the red thin line at the very bottom.
this is a sign of a strong healthy uptrend
2-in a downtrend you get lowers highs and lowers lows.
you'll see the red thick line at the very top of oscillator and the green thin line at the very bottom.
this is a sign of a strong healthy downtrend
3-If the thick lines (green and red) keep alterning you are in a trading range.
Knowing the market is trending or not can be very helpful for selection of strategiy, oscillator, etc.
You can play with the number of bars considered for calculation but it is
always lagging and gets too noisy as the number of bar gets smaller.
It can sometimes help you see the big picture depending of the setting used.
Good Trading
AROON is a different way to plot 2 moving averages:
one based on the lows and one bases on the highs.
You can adjust the period to suit your needs.
AROON let you see at a glance if:
1-in an uptrend you get higher highs and higher lows.
you'll see the green thick line at the very top of oscillator and the red thin line at the very bottom.
this is a sign of a strong healthy uptrend
2-in a downtrend you get lowers highs and lowers lows.
you'll see the red thick line at the very top of oscillator and the green thin line at the very bottom.
this is a sign of a strong healthy downtrend
3-If the thick lines (green and red) keep alterning you are in a trading range.
Knowing the market is trending or not can be very helpful for selection of strategiy, oscillator, etc.
You can play with the number of bars considered for calculation but it is
always lagging and gets too noisy as the number of bar gets smaller.
It can sometimes help you see the big picture depending of the setting used.
Good Trading
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