The indicator was developed by well-known technical analyst Tushar Chande in 1995 and is used to identify trend changes in the price of an asset, as well as the strength of that trend. The fact that he named the indicator "Aroon" which is Sanskrit for "Dawn’s Early Light" demonstrates his belief in his indicator's trend discovery capabilities.
It is composed of two lines, Aroon Up and Aroon Down.
The most basic strategy is to use the crossovers as trade signals:
- when Aroon Up crosses above Aroon Down, go Long
- when Aroon Down crosses above Aroon Up, go Short
- Exit when a crossover occurs in the opposite direction
What is this tool?
This tool is a performance scanner that uses a decision tree-based algorithm under the hood to find the most profitable period setting for the . It analyzes the range of periods between 2 to 100 and backtests the indicator for each period using the strategy mentioned above across the entire history of an instrument. If a more profitable parameter was found, the indicator will switch its value to the found one immediately.
It has an alert that notifies when a more profitable period was found.
NOTE: It does not change what has already been plotted.
Good luck and Happy Trading!
- Made optimization fix
May I know what you want to try? This is the optimizer of Aroon, it doesn't give you buy/sell signals.