Aroon XAUUSD Indicator Analysis and Aroon Gold Indicator Signals
Developed by Tushar Chande
This gold indicator is used to determine if a instrument is trending or not.
It is also used to indicate how strong the gold trend is.
It is also used to spot the starting of a market trend, the name its name which means morning or dawn.
This gold 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 trading price has reached during that period.
If xauusd trading price sets a new high, Aroon UP Indicator will be 100 - for each new high it will stay at 100. However, if xauusd trading 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 trading price is making new highs but when it starts to move down then xauusd price isn't making new highs.
If however xauusd trading price is making new lows for a particular xauusd trading price period then Aroon UP Indicator will be at zero
Calculation
Aroon UP Indicator is a percentage of time between xauusd price period and highest point.
If you use 10 xauusd trading 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 trading price periods minus 5 = 5
5/10 in percent = 50
Aroon UP Technical Indicator will be at 50
Aroon DOWN Indicator
This is calculated the same as Aroon UP Technical Indicator but this time using 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 & Generating Gold Trading Signals
This gold indicator uses the 50% level to measure momentum of the trend.
Buy Gold Signal & exit signal
Aroon UP Indicator above 50 is a technical buy signal
Aroon UP Indicator dipping below 50 is an exit signal if you had opened a buy xauusd trade.
Sell Gold Signal & exit signal
Aroon DOWN Indicator below 50 is a technical sell xauusd trade signal.
Aroon DOWN Indicator rising above 50 is an exit signal if you had opened a sell xauusd trade.
Buy & Sell Gold Trading Signals
