Mikula Forecasting Company

MarketWarrior Aroon

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.