InvestorsHub Logo
Followers 1651
Posts 18274
Boards Moderated 1
Alias Born 11/10/2004

Re: kermit_405 post# 273

Thursday, 03/31/2005 8:24:38 PM

Thursday, March 31, 2005 8:24:38 PM

Post# of 44374
'kermit_405'
Aronn osc are normally used for short term trending. Some daytraders use them to predict a trend reversal. Kind of like watching the tics on the daily level II,with a clock in your head. Could you notice the time it took for the tics up to occurr more frequently, then the tic down? As I see it, Aroon shows tics up at a more frequent rate, signals increased buying pressure. The more tics the more pressure. The reverse for down.

--------------------------------------------------------
Aroon is used to measure the presence and strength of trends. Aroon can be drawn either as two lines, the AroonUp and AroonDown, or an Aroon Oscillator representing the difference between the AroonUp and the AroonDown lines. The Aroon Oscillator oscillates between -100 and +100.

AroonUp for a given time period is calculated by determining how much time (on a percentage basis) elapsed between the start of the time period and the point at which the highest closing price during that time period occurred. AroonUp will be 100 when the instrument is setting new highs for the period. Conversely, AroonUp will be 0 if the instrument has continually dropped throughout the period. AroonDown is calculated in a similar manner, expect looking for lows as opposed to highs.

The Aroon Oscillator signals an upward trend is underway when it is above zero and a downward trend is underway when it falls below zero. The farther away the oscillator is from the zero line, the stronger the trend.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.