Indicators Aroon Shows the trends from top to state borders and vice versa. Gives you the ability to predict price changes. Reflecting the situation on the market, and the direction in which the price moves, it signals to the trader about a better time to make a purchase or sale of currency pairs. On the part of the Rays Indicators Aroon Profit or loss is recorded.
In other words, Indicators Aroon is a technical analysis method, designed to identify the main focus of the market. The graph shows two red painted lines (AroonDown) and blue (AroonUp) color.
- AroonUp indicates the time where the maximum price has been formed
- Down-time where the minimum price was formed
The indicator ranges from 0 to 100 and has three relative values: 30%, 50% and 70%. The rate, at 70%, showed high if you consider the AroonUp, or the lowest, if the AroonDown, trend. At first, at the opening of the period, aroonUp would be 100%, but if the price does not form a new maximum for a particular period of time, this figure, respectively, decreases. You can count the actual numbers using Formula A (N-H)/N) 100, where H is the number of days that have passed since the last minimum is set, N is the whole cycle.
There are three types Indicators Aroon: Extreme Indicator Indicators – The indicator line represents the increase and flow. With upward trends, the blue Line exceeds 70%, red line is below 30%. The descending Trend moves in the opposite direction: AroonUp is below 30%, the AroonDown is over 70%. In the second type, the line is parallel. This shows a stable market trend. The third indicator type is shown on the graph by crossing the line. At the same time, the interchange, which occurred at a level of 50%, showed a favourable period for the purchase of assets.