SPDR S&P 500 (SPY)

[leftyg]

Hi Rab..actually it is "supposed" to be an early or warning signal. I think it means "dawns early light" or some such in Sanskrit.

Further to my previous comment..I find the most use is in giving an early warning of a weakening change in the dominant, or higher line (be it the red one or the green one). It seems that the high line begins to drop away from the horizontal high, being the 100 level usually.. sometimes that happens before the price really makes a move..or early on anyway.

Early moves below 100 can be reversed back upward of course..so I use the 80 level as an indication that a trend move may be seriously under way. I also use shorter periods on the indicator..usually about aroon(15) on the daily chart.

Now having said all that..I'm not sure that there are not better ways to use the indicator. Anyone else using the aroon..and if so, how are you using it? Thanks.