The Aroon indicator is used for identifying the direction and strength of a trend and also the change from a trend to a flat. The ‘number of time periods’ parameter is required for calculating the indicator. The number of periods from the moment of appearance of the high and low values within a time range is calculated when the indicator is being built.
Aroon(up) — shows the number of periods, which have passed after the day’s high in the market. Aroon(down) works similarly but after the day’s low.
Aroon(up) = (number of periods minus the number of periods after the high) / number of periods * 100%
Aroon(down) = (number of periods minus the number of periods after the low) / number of periods * 100%
Aroon(up) and Aroon(down) fall in the range between 0 and 100.
How the indicator looks like in the chart:
The indicator has the following parameters:
Period - setting the indicator period value.
Panel - selection of the indicator location in the chart:
- New panel
Highest, Lowest - highest value and lowest value.
Show value - showing the indicator value on the price scale.
Show zero values - showing zero values.
Scale - if this option is ON, the scale will be calculated automatically based on the minimum and maximum indicator values, so that the indicator would be accommodated in the chart.
Visual type - visual setting of the indicator display in the chart:
- Up arrow
- Down arrow
- Axis label
Line style - setting of the line display style:
- Dash - dot
- Dash - dot - dot
Width - setting of the indicator line width.
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