If you are looking to download the Aroon Indicator MT4, the download link is at the very bottom of this post.
Disclaimer: I do not trade based on this Aroon Indicator so this is just something I researched online and wrote if up for those of you that may be interested in knowing how the Aroon Forex Indicator works and how to trade it. You just have to test or research and see how you can turn this Aroon Indicator into a workable forex strategy or use it with other indicators to develop into a forex trading strategy which you can use.
But first, here’s some bit of background behind the Aroon Indicator as well as how to interpret and trade it.
Who Developed the Aroon Indicator?
The aroon indicator was developed by a guy called Tushar Chande in 1995. As you can see, it is a forex indicator that has been developed fairly recently in the scheme of things compared to other forex indicators.
What Is The Idea Behind The Aroon Indicator?
The aroon indicator is a indicator used to:
- measure the strength of a trend
- and also the trend’s potential to continue.
- In addition, the aroon indicator measures the quality and types of trend, whether its is an uptrend or downtrend or sideways trend.
How To Trade With The Aroon Indicator MT4
The aroon indicator has two lines, the red line and the blue line. Both lines travel back and forth between 0 and 100.
The Red Line=Aroon up.
The Blue Line=Aroon down.
Here’s some inter
Here are some interpretation of the Aroon Indicator from Stockcharts that you may find useful in how to trade the aroon indicator:
At its most basic, the bulls have the edge when Aroon-Up is above 50 and Aroon-Down is below 50. This indicates a greater propensity for new x-day highs than lows. The converse is true for a downtrend. The bears have the edge when Aroon-Up is below 50 and Aroon-Down is above 50.
A surge to 100 indicates that a trend may be emerging. This can be confirmed with a decline in the other Aroon indicator. For example, a move to 100 in Aroon-Up combined with a decline below 30 in Aroon-Down shows upside strength.
Consistently high readings mean prices are regularly hitting new highs or new lows for the specified period. Prices are moving consistently higher when Aroon-Up remains in the 70-100 range for an extended period.
Conversely, consistently low readings indicate that prices are seldom hitting new highs or lows. Prices are NOT moving lower when Aroon-Down remains in the 0-30 range for an extended period. This does not mean prices are moving higher though. For that we need to check Aroon-Up.
New Trend Emerging
This is also what stockcharts had to say about new trend emerging:
There are three stages to an emerging trend signal.
- First, the Aroon lines will cross.
- Second, the Aroon lines will cross above/below 50.
- Third, one of the Aroon lines will reach 100.
For example, the first stage of an uptrend signal is when Aroon-Up moves above Aroon-Down. This shows new highs becoming more recent than new lows.
Keep in mind that Aroon measures the time elapsed, not the price. The second stage is when Aroon-Up moves above 50 and Aroon-Down moves below 50.
The third stage is when Aroon-Up reaches 100 and Aroon-Down remains at relatively low levels. The first and second stages do not always occur in that order.
Sometimes Aroon-Up will break above 50 and then above Aroon-Down. Reverse engineering the uptrend stages will give you the emerging downtrend signal. Aroon-Down breaks above Aroon-Up, breaks above 50 and reaches 100.
Aroon UP Down Indicator Download Link
Here is the aroon indicator mt4 download link: Aroon_Up_Down.