Ultra Aroon Oscillator
DISCLAIMER: All trading Indicators and strategies are used at your own risk. The trading Indicators and strategies signal(s) doesn’t constitute a recommendation that any particular security, portfolio of securities, transaction, or investment strategy to buy or sell. All buy and sell signal(s) generated is/are meant for entrainment and educational purpose.
*In layman terms, I am covering my ass and aren’t dropping the soap bar*
I have been trying to find a decent Aroon Indicator on Tradingview but not one up to my requirement. I, therefore, code one with an extra few additions to the UI design.
What is the Aroon Oscillator?
The Aroon Oscillator is a trend-following indicator that uses aspects of the Aroon Indicator (Aroon Up and Aroon Down) to gauge the strength of a current trend and the likelihood that it will continue. Readings above zero indicate that an uptrend is present, while readings below zero indicate that a downtrend is present. Traders watch for zero line crossovers to signal potential trend changes. They also watch for big moves, above 50 or below -50 to signal strong price moves.
The Aroon Indicator system includes Aroon Up, Aroon Down, and Aroon Oscillator. The Aroon Up and Aroon Down lines must be calculated first before drawing the Aroon Oscillator.
This indicator typically uses a timeframe of 14 periods however the timeframe is subjective. Use more periods to get fewer waves and a smoother-looking indicator. Use fewer periods to generate move waves and quicker turnarounds in the indicator.
The Aroon Oscillator moves between -100 and 100. A high oscillator value is an indication of an uptrend while a low oscillator value is an indication of a downtrend.
Aroon Oscillator Trade Signals
The Aroon Oscillator can generate trade signals or provide insight into the current trend direction of an asset.
When the oscillator moves above the zero line it means the Aroon Up is crossing above the Aroon Down. This means the price has made a high more recently than a low. That could be a sign that an uptrend is starting.
When the oscillator moves below zero, it means the Aroon Down is crossing below the Aroon Up. A low occurred more recently than a high, which could signal a downtrend is starting.
If you observe closely, one can potentially initiate a sell trade above 80 or a buy trade below -80.
Limitations of Using the Aroon Oscillator
The Aroon Oscillator does a good job of keeping a trader in a trade when a long-term trend develops. This is because during an uptrend, for example, the price tends to keep making new highs which keeps the oscillator above zero.
During choppy market conditions, the indicator will provide poor trade signals, as the price and the oscillator whipsaw back and forth.
The indicator may also sometimes provide trade signals too late to be of use. The price may have already run a significant distance before the trade signal develops. The price may be due for a retracement when the trade signal is appearing.
The number of time periods is also arbitrary. There is no proof that a more recent high or low within the last 14-periods will result in a new and sustained uptrend or downtrend.
The indicator is best used in conjunction with price action analysis, fundamentals of long-term trading, and other technical indicators.
**I would like to give a special thanks to Mr. Andre Botha (GMS) for his effort when I am in a fix with the coding. He has published his indicators and ideas in Tradingview.
*In layman terms, I am covering my ass and aren’t dropping the soap bar*
I have been trying to find a decent Aroon Indicator on Tradingview but not one up to my requirement. I, therefore, code one with an extra few additions to the UI design.
What is the Aroon Oscillator?
The Aroon Oscillator is a trend-following indicator that uses aspects of the Aroon Indicator (Aroon Up and Aroon Down) to gauge the strength of a current trend and the likelihood that it will continue. Readings above zero indicate that an uptrend is present, while readings below zero indicate that a downtrend is present. Traders watch for zero line crossovers to signal potential trend changes. They also watch for big moves, above 50 or below -50 to signal strong price moves.
The Aroon Indicator system includes Aroon Up, Aroon Down, and Aroon Oscillator. The Aroon Up and Aroon Down lines must be calculated first before drawing the Aroon Oscillator.
This indicator typically uses a timeframe of 14 periods however the timeframe is subjective. Use more periods to get fewer waves and a smoother-looking indicator. Use fewer periods to generate move waves and quicker turnarounds in the indicator.
The Aroon Oscillator moves between -100 and 100. A high oscillator value is an indication of an uptrend while a low oscillator value is an indication of a downtrend.
Aroon Oscillator Trade Signals
The Aroon Oscillator can generate trade signals or provide insight into the current trend direction of an asset.
When the oscillator moves above the zero line it means the Aroon Up is crossing above the Aroon Down. This means the price has made a high more recently than a low. That could be a sign that an uptrend is starting.
When the oscillator moves below zero, it means the Aroon Down is crossing below the Aroon Up. A low occurred more recently than a high, which could signal a downtrend is starting.
If you observe closely, one can potentially initiate a sell trade above 80 or a buy trade below -80.
Limitations of Using the Aroon Oscillator
The Aroon Oscillator does a good job of keeping a trader in a trade when a long-term trend develops. This is because during an uptrend, for example, the price tends to keep making new highs which keeps the oscillator above zero.
During choppy market conditions, the indicator will provide poor trade signals, as the price and the oscillator whipsaw back and forth.
The indicator may also sometimes provide trade signals too late to be of use. The price may have already run a significant distance before the trade signal develops. The price may be due for a retracement when the trade signal is appearing.
The number of time periods is also arbitrary. There is no proof that a more recent high or low within the last 14-periods will result in a new and sustained uptrend or downtrend.
The indicator is best used in conjunction with price action analysis, fundamentals of long-term trading, and other technical indicators.
**I would like to give a special thanks to Mr. Andre Botha (GMS) for his effort when I am in a fix with the coding. He has published his indicators and ideas in Tradingview.