{"id":9067,"date":"2021-07-15T16:47:16","date_gmt":"2021-07-15T13:47:16","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=9067"},"modified":"2026-05-26T10:52:47","modified_gmt":"2026-05-26T07:52:47","slug":"how-to-use-aroon-indicator-in-forex","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2021\/07\/15\/how-to-use-aroon-indicator-in-forex\/","title":{"rendered":"How to Use Aroon Indicator in Forex?"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<html><body><p>This overview is devoted to an oscillator called Aroon. If helps detect the current trend and find entry points to the market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"0-description-of-aroon\"><span class=\"ez-toc-section\" id=\"Description_of_Aroon\"><\/span>Description of Aroon<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Aroon is a trading indicator that belongs to the group of normalised <a href=\"https:\/\/roboforex.com\/blog\/2021\/06\/24\/top-7-oscillators-for-trading\/\" data-internallinksmanager029f6b8e52c=\"188\" title=\"awesome oscillator vs macd\">oscillators<\/a>. It was designed by a trader of Indian origin Tushar Chande in 1995 for assessing the market trend, whether it is strong or weak.<\/p>\n\n\n\n<p>As long as Chande was born in India, the name of the indicator belongs to Indian mythology: in Sanskrit, Aroon means Charioteer of the Sun God or Light of the Morning Dawn.<\/p>\n\n\n\n<p>Aroon contains of two main lines: Aroon-Up and Aroon-Down.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The <strong>Aroon-Up line<\/strong> is blue; it assesses from 0 to 100% the ratio of the number of periods (weeks, days, or hours, depending on the chosen <a href=\"https:\/\/roboforex.com\/blog\/2020\/05\/21\/how-to-choose-a-timeframe-for-trading\/\">timeframe<\/a>) that have passed since the high appeared on the chart &mdash; and the period of the indicator. The less time passes since the last high appeared on the chart, the higher the Aroon-Up line goes.<\/li><li>The <strong>Aroon-Down line<\/strong> (red color) assesses from 0 to 100% the ratio of the number of periods (weeks, days, or hours, depending on the chosen <a href=\"https:\/\/roboforex.com\/blog\/2020\/05\/21\/how-to-choose-a-timeframe-for-trading\/\" data-internallinksmanager029f6b8e52c=\"135\" title=\"Timeframe\">timeframe<\/a>) that have passed since the low appeared on the chart &mdash; and the period of the indicator. The less time passes since the last low appeared on the chart, the higher the Aroon-Down line goes.<\/li><\/ul>\n\n\n\n<p>The indicator is calculated in a separate window under the price chart. Through levels 30% and 70%, lines are drawn that help detect the current trend. If Aroon-Up goes above 70%, and Aroon-Down drops below 30%, this means the trend is ascending, <a href=\"https:\/\/roboforex.com\/blog\/2022\/06\/16\/bull-market-characteristic-and-trading-principles\/\" data-internallinksmanager029f6b8e52c=\"302\" title=\"Bull Market\">bulls<\/a> are dominating.<\/p>\n\n\n\n<p>And vice versa: when Aroon-Up is below 30% and Aroon-Down rises above 70%, the trend is descending, and <a href=\"https:\/\/roboforex.com\/blog\/2022\/06\/23\/bear-market-characteristics-and-tradings-principles\/\" data-internallinksmanager029f6b8e52c=\"301\" title=\"Bear Market\">bears<\/a> are in control.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1007\" height=\"630\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-1007x630.png\" alt=\"What Aroon looks like\" class=\"wp-image-9070\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-1007x630.png 1007w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-320x200.png 320w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-768x480.png 768w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-150x94.png 150w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon.png 1444w\" sizes=\"(max-width: 1007px) 100vw, 1007px\" \/><\/a><figcaption><em>What Aroon looks like<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"1-installing-and-setting-up-the-indicator\"><span class=\"ez-toc-section\" id=\"Installing_and_setting_up_the_indicator\"><\/span>Installing and setting up the indicator<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To add Aroon to the popular trading terminal <a href=\"https:\/\/roboforex.com\/blog\/2019\/07\/01\/how-to-use-metatrader-4-mt4\/\">MetaTrader 4<\/a>, ,download the file of the indicator (using the link at the end of the article) and copy it to the <a href=\"https:\/\/roboforex.com\/blog\/2019\/11\/19\/top-10-forex-indicators-that-every-trader-needs\/\" data-internallinksmanager029f6b8e52c=\"99\" title=\"Indicators\">Indicators<\/a> folder. Via the Main Menu, open File\/Open data catalogue\/MQL 4\/Indicators and copy the file of the indicator to this folder. Then restart the terminal.<\/p>\n\n\n\n<p>If the process goes correct, Aroon will appear on the list of user indicator, and you will be able to install it to the chart of the required financial instrument via the Main Menu: Insert\/Indicators\/User\/Aroon. Otherwise, left-click it by the mouth and drag to the chart from Navigator.<\/p>\n\n\n\n<p>The lines are calculated as follows:<\/p>\n\n\n\n<p>Aroon-Up = (P - Nmax) \/ P * 100%<br>Aroon-Down = (P - Nmin) \/ P * 100%<\/p>\n\n\n\n<p>Where:<\/p>\n\n\n\n<p>P is the period of the indicator;<br>Nmax is the number of periods (candlesticks) since the last high;<br>Nmin is the number of periods (candlesticks) since the last low.<\/p>\n\n\n\n<p>Setting up the Aroon indicator, you can customize the following parameters in Input Parameters:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>AroonPeeiod<\/strong>&nbsp;is the period of the indicator, 14 by default. For longer time frames, the author recommends 25.<\/li><li><strong>MailAlert<\/strong>&nbsp;informs you by mail about Aroon-Up and Aroon-Down crossing one the other. \"False\": the alert is off; \" True\": the alert is on.<\/li><li><strong>SoundAlert<\/strong>&nbsp;notifies you of Aroon-Up and Aroon-Down crossing by a sound. \"False\": the alert is off. \" True\": the alert is on.<br>Also, in levels, set the levels recommended by the author for detecting the current trend: 70% and 30%.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-settings-en.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1014\" height=\"630\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-settings-en-1014x630.png\" alt=\"Setting up the Aroon indicator\" class=\"wp-image-9071\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-settings-en-1014x630.png 1014w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-settings-en-322x200.png 322w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-settings-en-768x477.png 768w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-settings-en-150x93.png 150w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-settings-en.png 1449w\" sizes=\"(max-width: 1014px) 100vw, 1014px\" \/><\/a><figcaption><em>Setting up the Aroon indicator<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"2-trading-with-aroon\"><span class=\"ez-toc-section\" id=\"Trading_with_Aroon\"><\/span>Trading with Aroon<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Aroon is used in trading to define the current trend, but it can also give its own <a href=\"https:\/\/roboforex.com\/blog\/2019\/11\/28\/signals-on-forex-where-to-search-how-to-find-filter-and-create\/\" data-internallinksmanager029f6b8e52c=\"101\" title=\"Signals\">signals<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-defining-the-trend\"><span class=\"ez-toc-section\" id=\"Defining_the_trend\"><\/span>Defining the trend<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The position of the lines in relation to each other and the signal levels help determine the actual trend.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"4-uptrend\">Uptrend<\/h4>\n\n\n\n<p>In an uptrend, the ascending trend line Aroon-Up (blue) rises above 70% and remains in this area, sometimes reaching 100%. The Aroon-Down line (red) drops below 30% and remains there, demonstrating 0% from time to time. In an uptrend, it is recommended to find entry points to buys.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-uptrend.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1011\" height=\"630\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-uptrend-1011x630.png\" alt=\"Detecting an uptrend with Aroon\" class=\"wp-image-9072\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-uptrend-1011x630.png 1011w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-uptrend-321x200.png 321w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-uptrend-768x479.png 768w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-uptrend-150x93.png 150w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-uptrend.png 1444w\" sizes=\"(max-width: 1011px) 100vw, 1011px\" \/><\/a><figcaption><em>Detecting an uptrend with Aroon<\/em><\/figcaption><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"5-downtrend\">Downtrend<\/h4>\n\n\n\n<p>In a downtrend, Aroon-Down (red line) rises above 70% and remains there in a strong descending trend, sometimes showing 100%. Aroon-Up (blue line), on the contrary, drops under 30% and rests there, sometimes showing 0%. In a downtrend, look for opportunities to sell.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-downtrend.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1007\" height=\"630\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-downtrend-1007x630.png\" alt=\"Determining a downtrend with Aroon\" class=\"wp-image-9073\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-downtrend-1007x630.png 1007w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-downtrend-320x200.png 320w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-downtrend-768x481.png 768w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-downtrend-150x94.png 150w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-downtrend.png 1443w\" sizes=\"(max-width: 1007px) 100vw, 1007px\" \/><\/a><figcaption><em>Determining a downtrend with Aroon<\/em><\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"6-crossing-of-indicator-lines\"><span class=\"ez-toc-section\" id=\"Crossing_of_indicator_lines\"><\/span>Crossing of indicator lines<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The main trading signal of the indicator is the crossing of Aroon-Up and Aroon-Down between 30% and 70%.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"7-signal-to-buy\">Signal to buy<\/h4>\n\n\n\n<p>A signal to buy forms when Aroon-Up (blue) escapes from under 30% and crosses the Aroon-Down (red) line, descending from above. An ascending movement begins. Place a <a href=\"https:\/\/roboforex.com\/blog\/2019\/07\/12\/what-is-stop-loss-and-take-profit\/\">Stop Loss<\/a> behind the local low and take the <a href=\"https:\/\/roboforex.com\/blog\/2019\/07\/12\/what-is-stop-loss-and-take-profit\/\">Profit<\/a> when the price reaches an important resistance level or when the lines cross vice versa.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-buy.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1007\" height=\"630\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-buy-1007x630.png\" alt=\"A signal to buy forms on Aroon\" class=\"wp-image-9074\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-buy-1007x630.png 1007w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-buy-320x200.png 320w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-buy-768x481.png 768w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-buy-150x94.png 150w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-buy.png 1446w\" sizes=\"(max-width: 1007px) 100vw, 1007px\" \/><\/a><figcaption><em>A signal to buy forms on Aroon<\/em><\/figcaption><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"8-signal-to-sell\">Signal to sell<\/h4>\n\n\n\n<p>A signal to sell appears when Aroon-Down (red line) escapes from the 30% area and crosses from below the descending Aroon-Up (blue line). This indicates a downtrend. Place an SL behind the local high and take the Profit when the price reaches an important <a href=\"https:\/\/roboforex.com\/blog\/2020\/02\/21\/how-to-trade-support-and-resistance-levels\/\">support level<\/a> or when the lines cross vice versa.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-sell.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1009\" height=\"630\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-sell-1009x630.png\" alt=\"A signal to sell forms on Aroon\" class=\"wp-image-9075\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-sell-1009x630.png 1009w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-sell-320x200.png 320w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-sell-768x480.png 768w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-sell-150x94.png 150w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/07\/Aroon-sell.png 1449w\" sizes=\"(max-width: 1009px) 100vw, 1009px\" \/><\/a><figcaption><em>A signal to sell forms on Aroon<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"9-closing-thoughts\"><span class=\"ez-toc-section\" id=\"Closing_thoughts\"><\/span>Closing thoughts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Aroon indicator, created by an Indian trader Tushar Chande, helps detect the prevailing market trend. Also, it gives its own trading signals that should be used alongside classic methods of <a href=\"https:\/\/roboforex.com\/blog\/2019\/10\/28\/brexit-pond-perspectives-and-misty-horizons\/\">tech analysis<\/a>, <a href=\"https:\/\/roboforex.com\/blog\/2019\/08\/05\/trading-the-most-popular-patterns\/\">price patterns<\/a>, <a href=\"https:\/\/roboforex.com\/blog\/2020\/01\/21\/what-do-you-know-about-price-action-strategy-patterns-indicators\/\">Price Action<\/a> for more reliability. Before you start trading for real, practice on a demo account.<\/p>\n\n\n\n<p class=\"wp-block-button aligncenter\">\n<a class=\"button button-blue\" href=\"https:\/\/gorobo.pro\/efz\" rel=\"nofollow\">Download Aroon Indicator<\/a><\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"<p>This overview describes an oscillator called Aroon. It helps detect the current trend and find entry points to the market.<\/p>\n","protected":false},"author":58,"featured_media":9068,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[29],"tags":[2102],"class_list":["post-9067","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education","tag-aroon-indicator"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Use Aroon Indicator in Forex? - RoboForex Blog<\/title>\n<meta name=\"description\" content=\"This overview describes an oscillator called Aroon. 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