The Aroon indicator was developed by Tushar Chanda, a technical analyst. This indicator is used to
With this indicator, you will want to find out the trend continuing after a period of consolidating, and to assess the strength of those trends. This indicator is a very good technical analysis tool for trend traders. You can determine whether the market is trending up, trending down, or not trending at all.
It is plotted in the scale between 0 and 100 and consists of a green and a red line. When the green line is above 70, and the red line is below 50, then the uptrend is considered stronger. You are aiming to identify trends before they happen, using this indicator.
You can use it along with other indicators like MACD, RSI, etc. This indicator is not ideal for traders who want simple approaches to trading. It can make chart appear too busy and can affect quick decision making.