Mikula Forecasting Company
Mikula Forecasting Company
The chart below shows the Aroon indicator. This indicator draws
two lines the Aroon Up and the Aroon Down. The Aroon Up calculates the position
of the current bars high inside the high range over the past X bars. The Aroon
Down calculates the position of the current bars low inside the low range over
the past X bars. When the market makes a new high the Aroon Up is at 100. When
the market makes a new low the Aroon Down will be at 0. The Aroon is used to
judge trend strength. When both Aroon lines are sloping down the market is
consolidating sideways. When both Aroon lines fall below 50 the market is over
consolidated and should have a breakout.
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