In a Simple word, Aroon Oscillator Indicator helps you, where to buy or short in for long periods of time trading in a trending market.
Using this indicator after buying or selling in a trending market you can stick to full trends rally to earn more profit.
This indicator has moved between -100 to 100. 0 to 100 is a positive side and 0 to -100 is the negative side. If Aroon oscillator moving around 0 to 100. Means market is a bullish trend. You can buy the above the ‘0’ line.
If this indicator moving around 0 to -100. That Means market is in a bearish trend. You can short sell below the ‘0’ line.
Aroon oscillator indicator setting
Go to indicator search section and search for “Aroon Oscillator”.
- Period: ’14’. This means 14 bars( candle) will take to calculate this indicator line.
- Aroon Oscillator: By default this indicator line color is black. You can change this color.
Aroon Oscillator indicator trading strategy
To know Aroon Oscillator Trading Strategy, This Indicator move between -100 to + 100. 0 to 100 is the positive side, and to -100 is the Lower side.
Aroon indicator buying Trading Strategy
- If indicator Moving upward direction you can buy shares above ‘0’ line. then you can stick to stock when indicator line moving downward direction ( this means bullish trend may end) and if indicator line touch ‘0’ line and moving down. Then you can exit from the stock.
- 0 to 100 indicate a bullish trend. So if this indicator line crossing the ‘0’ line and move upward this is the sign of the bullish trend. After touching the ‘100’ line. If this indicator moving down this indicates share price weakness.
Aroon oscillator Short selling strategy
- indicator move between the ‘0’ to ‘-100’ is the negative side movement.
- If indicator Moving Downward direction, you can short sell below the ‘0’ line. then you can stick to stock when indicator line started moving upward direction ( this means bearish trend may end) and if indicator line touch ‘0’ line and moving upward. Then you can exit from the stock.
- 0 to -100 indicate a bearish trend. So if this indicator line crossing the ‘0’ line and move to -100 this is the sign of the bearish trend. After touching the ‘100’ line. If this indicator moving in an upward direction, this indicates share price weakness.
Conclusion
Aroon Oscillator is used in a trending market to show you when you can buy or when to sell. this will give you long and short positions to enter in the stock and exit from the stock.
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