We have already seen in another article the issue of indicators, in this case the Aroon indicator is useful because it is a system that can determine whether the asset being analyzed is trending or not and if so, strong can be the trend.
This indicator was developed by Tushar Chande in 1995 and its main objective is to show when it considers whether there is a new trend and do so from the beginning.
Consisting of two lines called Aroon Aroon-Up-Down, the first measures the number of periods since the price peaked in a certain number of days, while the second line-Down Aroon is responsible for measuring the number of periods since the minimum price also reached a certain number of days.
This indicator Arron-up within 15 days can show the number of days since the trend peaked, something that differentiates it from other indicators that focus only on the price action over time but Aroon and do the reverse that is focusing in time with respect to price.
Aroon is useful for identifying emerging trends and also those for periods of consolidation or correction called, besides being used as an element that can anticipate changes in trend.
The results are shown in terms of percentages ranging ranging from 0 to 100 and as based on maximum and minimum to put together a comparison can be made easily.
