Investor Education Momentum Indicators Aroon Oscillator

    Financial Indicator

    Equity momentum-indicators tool provides you with the Momentum Indicators execution environment for running Aroon Oscillator indicator against Equity. Momentum indicators of Equity are pattern recognition functions that provide distinct formation on Equity potential trading signals or future price movement. Analysts can use these trading signals to identify current and future trends and trend reversals to provide buy and sell recommendations. Please specify Time Period to run this model.
    Investment Horizon     30 Days    Login   to change
    Symbol
    Refresh

    The Aroon Oscillator was developed by Tushar S. It is calculated by subtracting the Aroon Down from the Aroon Up. The resultant number will oscillate between 100 and -100. Investor Education Aroon Oscillator will be high when the Aroon Up is high and the Aroon Down is low, indicating a strong upward trend. The Aroon Oscillator will be low when the Aroon Down is high and the Aroon Up is low, indicating a strong downward trend. When the Up and Down are approximately equal, the Aroon Oscillator will be around zero, indicating a weak trend or consolidation.. View also all equity analysis

    Aroon Oscillator In A Nutshell

    If you have seen this indicator before, you will note that there are two lines that operate within this tool. They are called the Aroon up and Aroon down. What makes this simple is the up line measures the strength of the chart going to the upside and down measures the strength of the chart going down.

    Technical analysis is one of the most popular analysis out there and with that comes the various tools and indicators that can help you zone in on trades. The Aroon indicator is an indicator that is used to help you the trader find the different trends that are out there.

    Closer Look at Aroon Oscillator

    The tools runs from zero to one hundred indicating the strength of the trend. The higher the current directional line the stronger the trend may be at the current point in time. With that, you still have to watch the markets because not all indicators are perfect, but rather a tool to help you find potential entry points.

    Some other chart plots you could use are standard deviation levels or Bollinger Bands as these can help you confirm a directional change in the market. What you have to notice is this indicator does not take into account fundamental data and that means you still have to look under the hood of the company to understand how the company is operating. Using both technical and fundamental analysis together will help to give you the most well rounded opinion.

    Testing on a demo account first is key because this will let you test out the tool without risking your hard earned money. Also, this is a popular indicator so there are many different write ups out there on the Internet to help you understand the tool more. Finding trends in a chart is important especially for those who are long term investors or swing traders.

    Additional Technical Research