Aroon Oscillator
Definition
The Aroon Oscillator is a technical analysis indicator derived from the Aroon Up and Aroon Down lines. It's calculated by subtracting the Aroon Down from the Aroon Up. The resulting oscillator moves between -100 and +100 and aims to quantify the strength and direction of a trend.

Suggested Trading Use
Traders can use the Aroon Oscillator to identify potential trend reversals and the strength of existing trends. A shift from a negative to a positive value can signal the beginning of an uptrend, suggesting a buying opportunity. Conversely, a move from a positive to a negative value may indicate a starting downtrend, which could be a cue to sell or short the asset.
High absolute values (+70 to +100 or -70 to -100) often indicate a strong trend, whereas values close to zero may suggest a lack of a definitive trend or a consolidating market.
By incorporating the Aroon Oscillator into their trading charts, traders can gain a better understanding of market momentum and make informed decisions on when to enter or exit trades. This indicator is valuable for traders who want to pinpoint trend strength and direction in a single line, making it easier to interpret and apply.
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