Indicator - Aroon
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Calculation Aroon
For a given period of X days:
- Aroon UP represents the number of days since the last high of the period.
- Aroon DOWN represents the numbre of days since the last low of the period.
These indicators oscillate between 0 and 100.
For example, if the price is currently at the highest level of the period, Aroon UP is equal to 100.
If the price was at its highest point at the beginning of the period, Aroon UP would be equal to zero.
Interpretation Aroon
This indicator can help to detect trends.
An uptrend can be detected when the Aroon Up stays above 70 while the Aroon down is below 30 and vice-versa for a downtrend.
The crossover of both lines can also be a signal of a new trend:
- When Aroon DOWN crosses over Aroon UP, a bearish signal is given
- When Aroon UP crosses over Aroon DOWN, a bullish signal is given
