Technical indicator: Aaron
The technical indicator Aroon is part of technical analysis charts to analyze trends in an asset. It is used today in Forex, where appropriate, but also has in binary options. Indicates the tendency of an asset but also the strength of the trend.
It is calculated based on two indicators called Aroonup and Aroon down.
To calculate these indicators take certain time periods which will choose depending on the asset and how accurate we want the prediction
Aroonup = measures the time that has passed since the asset reached its highest value. The formula to calculate it is
Aroonup = 100 x (number of periods, number of periods since the price reached the highest value) / number of periods
That is, if you set one hundred periods and 20 days have elapsed since the higher the value ma Aaronup would be worth 80
Aroondow = measures the time that has passed since the asset reached its lowest value. Its formula is
Aroondow = 100 x (number of periods, number of periods since the price reached the lowest value) / number of periods
What we draw from this
Today in Forex is considered an asset present an uptrend if the line AroonUp has a value greater than 70. On the contrary, the active ingredient has a downward trend when the Aroon down is above 70. If the two lines are close to each other in a range between 30 and 70, then the market trend is presenting lateral
