Replies to post #586 on World Surveillance Group Inc (fka WSGI)

[lowtrade]

Juststocks and all, This seems to be the best(easiest to understand) explaination I've found so far. Cross over hight has nothing to do with strength, just the direction the trend change will be. up over down, we go up and down over up, we go down. The longer the up stays up and the longer thse down stays down, the stronger the trend.(how long ti lasts, not how high it goes. And parellel lines show little trending change, a time of accumulation.-----------------------
Interpretation
There are basically three conditions that you look for when interpreting the Aroon indicator: extremes at 0 and 100, parallel movement between Aroon Up and Aroon Down, and crossovers between Aroon Up and Aroon Down.

Extremes: When the Aroon Up line reaches 100, strength is indicated. If the Aroon Up remains persistently between 70 and 100, a new uptrend is indicated. Likewise if the Aroon Down line reaches 100, potential weakness is indicated. If the Aroon Down remains persistently between 70 and 100, a new downtrend is indicated.

A strong uptrend is indicated when the Aroon Up line persistently remains between 70 and 100 while the Aroon Down line persistently remains between 0 and 30. Likewise a strong downtrend is indicated when the Aroon Down line persistently remains between 70 and 100 while the Aroon Up line persistently remains between 0 and 30.

Parallel Movement: When the Aroon Up and Aroon Down Lines move parallel with each other (are roughly at the same level), then consolidation is indicated. Expect further consolidation until a directional move is indicated by an extreme level or a crossover.

Crossovers: When the Aroon Down line crosses above the Aroon Up line, potential weakness is indicated. Expect prices to begin trending lower. When the Aroon Up line crosses above the Aroon Down line, potential strength is indicated. Expect prices to begin trending higher.

This seemed much more like MDI than MACD as I 1st thought. As a matter of fact I found this statement :-------------------
In some ways, Aroon is similar to Wilder's DMI system (and the Aroon Oscillator is similar to Wilder's ADX line) however the Aroon is constructed in a completely different manner. Divergences between the two systems may be very instructive.

All and all, Aroon 5 day matches GTELs PPs movements better than any indicator I've found and I will continue to study it closer, while using it as my main indicator for GTEL TA.

Success!

[Juststocks]

Low, no what I was looking at was where the up crossed the down headed up. On last nites chart and the chart I did as a demo, showed the arron up crossing the aroon down, at or below 30. when the up aroon is heading north and crosses the down below 30, there has been a bigger pop. the same when aroon up heads north and crosses above the 70. I was looking at precisely the size of the pop, I know it signals a reversal, but how much of a reversal was where I was going. I am still backtesting this theory, using gtel as a poster child. So far, with gtel, the theory is true. Currently I am running 5-6 charts a pop, looking at aroons to see if the theory is true for them as well, interesting findings so far. I will post a few over the weekend so you can visually see what I mean. I think its great to know there is a reversal coming, but....how much of one can I expect?