Aroon XAUUSD Indicator Analysis and Aroon Gold Indicator Signals
Developed by Tushar Chande
This indicator is used to determine if a trading instrument is trending or not.
It is also used to indicate how strong the gold trend is.
It is also used to identify the beginning of a trend, the name its name which means morning or dawn.
This indicator has two lines:
- Aroon UP Indicator
- Aroon DOWN Indicator
Aroon UP Indicator
Percentage of time between the start of a time period and the highest point that xauusd price has reached during that period.
If xauusd price sets a new high, Aroon UP Indicator will be 100 - for each new high it will stay at 100. However, if xauusd price moves down by a certain percentage, then that percentage is subtracted from the 100 and Aroon UP Indicator starts to move down. This means that if Aroon UP Indicator stays at 100 then xauusd price is making new highs but when it starts to move down then xauusd price is not making new highs.
If however xauusd price is making new lows for a particular xauusd price period then Aroon UP Indicator will be at zero
Aroon UP Indicator is a percentage of time between xauusd price period and highest point.
If you use 10 xauusd price periods for calculation:
Example 1: Highest xauusd price was 1 day ago
Then if the highest point was yesterday, i.e. 1 day before then
10 xauusd price periods minus 1 day= 9
9/10 in percent terms = 90
Aroon UP Indicator will be at 90
Example 2: Highest xauusd price was 5 days ago
If the highest point was 5 days ago then
10 xauusd price periods minus 5 = 5
5/10 in percent = 50
Aroon UP Indicator will be at 50
Aroon DOWN Indicator
This is calculated the same as Aroon UP Indicator but this time using the lowest point instead of the highest point.
When a new low is set Aroon DOWN Indicator is at 100 and when a new high is set it will move to zero.
XAUUSD Trading Analysis and Generating XAUUSD Trading Signals
This indicator uses the 50 % level to measure momentum of the trend.
Buy Gold Trading Signal and exit signal
Aroon UP Indicator above 50 is a technical buy gold trading signal
Aroon UP Indicator dipping below 50 is an exit signal if you had opened a buy gold trade.
Sell Gold Trading Signal and exit signal
Aroon DOWN Indicator below 50 is a technical sell gold signal.
Aroon DOWN Indicator rising above 50 is an exit signal if you had opened a sell gold trade.
Buy and Sell Gold Trading Signals