Aroon XAUUSD Indicator Technical Analysis & Aroon XAUUSD Indicator Signals
Developed by Tushar Chande
This xauusd indicator is used to determine if a instrument is trending or not.
It is also used to indicate how strong the xauusd trend is.
It is also used to spot the starting of a trend, the name its name which means morning or dawn.
This xauusd indicator has two lines:
- Aroon UP
- Aroon DOWN
Aroon UP
Percentage of time between the start of a time period and the highest point that gold price has reached during that period.
If gold trading price sets a new high, Aroon UP will be 100 - for each new high it will stay at 100. However, if gold trading price moves down by a certain percentage, then that percentage is subtracted from the 100 and Aroon UP starts to move down. This means that if Aroon UP stays at 100 then gold trading price is making new highs but when it starts to move down then gold price is not making new highs.
If however gold trading price is making new lows for a particular gold trading price period then Aroon UP will be at zero
Calculation
Aroon UP is a percentage of time between gold trading price period and highest point.
If you use 10 gold price periods for calculation:
Example 1: Highest gold price was 1 day ago
Then if the highest point was yesterday, i.e. 1 day before then
10 gold trading price periods minus 1 day= 9
9/10 in percent terms = 90
Aroon UP will be at 90
Example 2: Highest gold trading price was 5 days ago
If the highest point was 5 days ago then
10 gold price periods minus 5 = 5
5/10 in percent = 50
Aroon UP will be at 50
Aroon DOWN
This is calculated the same as Aroon UP but this time using lowest point instead of highest point.
When a new low is set Aroon DOWN is at 100 and when a new high is set it will move to zero.
Gold Technical Analysis & How to Generate Trading Signals
This xauusd indicator uses the 50% level to measure momentum of the trend.
Buy XAUUSD Signal & exit signal
Aroon UP above 50 is a technical buy signal
Aroon UP dipping below 50 is an exit signal if you had opened a buy gold trade.
Sell XAUUSD Signal & exit signal
Aroon DOWN below 50 is a technical sell gold trade signal.
Aroon DOWN rising above 50 is an exit signal if you had opened a sell gold trade.
Buy & Sell XAUUSD Signals
