HOW TO TRADE FOREX WITH AROON TECHNICAL INDICATOR - forex trading is a game or business

HOW TO TRADE FOREX WITH AROON TECHNICAL INDICATOR ~ forex trading is a game or business

Dear Traders,Aroon technical indicator is classified as Oscillator because it is a range bound technical indicator.The indicator is developed by Tushar Chanda in 1995. The indicator has two lines Aroon up and Aroon down. This indicator helps to find the strength of the trend and the entry/exit signals.

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Here in the above image red line represents the power of the down trend called Aroon down, and the green line represent the power of the up trend and called Aroon up. Read the following principles of Aroon indicator.

• When the Aroon up is above 70, it means the up trend is stronger than the down trend.
• When the Aroon down is above 70, it means the down trend is stronger than the up trend.
• When the Arron up is bellow 30, it means the up trend is weaker than the down trend.
• When the Arron down is bellow 30, it means the down trend is weaker than the up trend.
• When the Aroon up going up and the Arron down going down, it means the up trend is becoming stronger.
• When the Arron down going up and the Aroon up going down, it means the down trend is becoming stronger.

The above principles are used to find entry and exit signals and to know the strength of the trend, using Aroon indicator.

It is suggested that the entry and exit signals should be confirmed by other technical indicators or price chart patterns.

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