-
 Lesson on Aroon Lines
Lesson Aroon lines
When the Aroon(up) and Aroon(down) are moving lower in close proximity, it signals that a consolidation phase is under way and no strong trend is evident. When Aroon(up) dips below 50, it indicates that the current trend has lost its upwards momentum. Similarly, when Aroon(down) dips below 50, the current downtrend has lost its momentum. Values above 70 indicate a strong trend in the same direction as the Aroon (up or down) is under way.
The Aroon Oscillator signals an upward trend is underway when it is above zero and a downward trend is underway when it falls below zero. The farther away the oscillator is from the zero line, the stronger the trend.
Chart by stockcharts.com
-
Re: Lesson on Aroon Lines
Hello S_A,
I have a couple of questions about the Aroon.
I’ve noticed in this example that the consolidation phase as outlined in the center of the chart doesn’t seem to correspond with the movement of the stock. There was a sharp gap up then a continued rise of the stock for about a week or so.
Does the Aroon lag to the extent that it can’t really be used to judge entry and exit points? Can the settings be set faster to compensate for this? Ie. to give a better entry and exit point? And finally can the Aroon be coupled with another indicator or overlaid on top of another indicator to show confirmation?
Thank you,
-Ug
-
Re: Lesson on Aroon Lines
Yes, the Aroon line is a lagging indicator and I never use it on its own as a point of BUY or SELL signals.
Yes you can change the parameters to a lower number like 10 or even 5 or whatever you want. Its all personal choice (the lower the number the quicker it responds to price movement, the higher the number the slower)
I dont overlay it with anything but I am sure you can couple it with the RSI or MACD line and come up with a nice one two punch on a SHORTER term Aroon parameter.
SA
 Originally Posted by Ugluck
Hello S_A,
I have a couple of questions about the Aroon.
I’ve noticed in this example that the consolidation phase as outlined in the center of the chart doesn’t seem to correspond with the movement of the stock. There was a sharp gap up then a continued rise of the stock for about a week or so.
Does the Aroon lag to the extent that it can’t really be used to judge entry and exit points? Can the settings be set faster to compensate for this? Ie. to give a better entry and exit point? And finally can the Aroon be coupled with another indicator or overlaid on top of another indicator to show confirmation?
Thank you,
-Ug
All my signatures are purely my opinion. Please use your own buy and sell signals and never invest in a stock you can not afford to lose money on. For a complete disclaimer click here
-
nice post.how can i use it in my amibroker or any other chart.i mean may i have afl code
|
Checking For Related Data... |
View Profile
View Forum Posts
Private Message
Reply With Quote
Posting Permissions
Bookmarks