Aroon Oscillator Indicator
Platform: MT4 Type: Oscillator Last update: September 28, 2024The Aroon Oscillator Indicator for MT4 is a forex technical analysis tool. In fact, it is an oscillator that quickly finds out the trend stop and the start of a sideways trend in the horizontal interval, and vice versa. The formula for this gauge is calculated as the difference between Aroon Up and Aroon Down. The signals provided by the Aroon Oscillator are pretty simple, and we suggest confirming them by some filter.
How to use it in trading?
The Aroon Oscillator indicates a strongly growing trend when the values of the Aroon Oscillator exceed 40 to 100. Conversely, a clearly declining trend is considered when the values of the Aroon Oscillator are dropping between -40 and -100.
Buy Signal
Follow these steps for a long trade:
- Aroon Oscillator turns from negative to positive (from red bars to blue bars)
- Price swings higher from recent low swing
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the last low point of the market
- Take profit or exit trade whenever the Aroon Oscillator provides opposite signal or use your own method of trade exit
Sell Signal
Follow these steps for a short trade:
- Aroon Oscillator turns from positive to negative (from blue bars to red bars)
- Price swings lower from recent high swing
- Sell trade is triggered after the above conditions are met
- Set stop loss a few pips above the last high point of the market
- Take profit or exit trade whenever the Aroon Oscillator provides opposite signal or use your own method of trade exit
