Aroon Oscillator Indicator (MT4) - Free Download - Best Forex Indicators

Introduction to the Aroon Oscillator Indicator

The Aroon Oscillator Indicator 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 Aroon Oscillator 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 forex filter.

The Aroon Oscillator Indicator fits all kinds of timeframes and currency pairs. It is displayed in a separate window placed just below the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.

How does it work? How to apply in trading?

Trading Rules Explanation

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

As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.

How to set up the Aroon Oscillator indicator in MT4?

Installation Guide

Download the Aroon Oscillator.rar archive at the bottom of this post, unpack it, then copy and paste the Aroon Oscillator.ex4 or Aroon Oscillator.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.

You can gain access to this folder by clicking the top menu options, which goes as follows:

File > Open Data Folder > MQL4 > Indicators (paste here).

Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.

Bottom Line

The Aroon Oscillator indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it.