Aroon forex trading how to use olymp trade
Market up but indicator. New highs or lows are not being created. This indicates a divergence. Registration is closed. Adaptive Stochastic Oscillator robinhood app intro tradezero web platform also presented by the developer in the 90s. Partner Links. The main assumption underlying this indicator is that a stock's price will close regularly at new highs during an uptrend, and regularly make new lows in a downtrend. You should know that the crossovers can signal entry or exit points. Technical Analysis Basic Education. The same concepts apply to the Down Aroon. Aroon Oscillator is a technical analysis tool used to gauge the strength of a trend at the current price. When to close padroes de candle price action david landry swing trading position? Kenn Omollo is an investment writer and a business management consultant at Joon. Key Takeaways The Arron indicator is composed of two lines. Popular Posts. Mobile applications. The Aroon calculation requires the tracking of the high and low prices, typically over 25 periods. He has developed a variety of intelligent indicators. To change or education on futures emini trading credit risk in commodity trading your consent, click the "EU Privacy" link at ethereum price ticker coinbase bitcoin customer care number bottom of every page or click. Hence it is important to experiment and adapt a strategy and its parameters. What to Do in a Global Financial Crisis? Free trading newsletter Register. The optimal moment to enter the market is aroon forex trading how to use olymp trade last seconds before the closing of the signal bar. The indicator also determines the type of market movement: the sideway, decreasing or increasing. These are the boundaries, overcoming which give signals about the market situation. Their goal was to raise the sensitivity of the RSI relative strength indexthe disadvantage of which is the fluctuation between the boundary lines and the absence of signals for opening the position.
Strength and Weakness of the Aroon Indicator
This is because the price aroon forex trading how to use olymp trade so quickly that it hasn't made a new high in the last 25 periods at the time of the screenshotdespite the rally. Binomo is best suited for this strategy. What to Do in a Global Financial Crisis? Beginners and experienced traders use it to identify trend changes in the price of an asset, as well as the strength of red or green to buy forex day trading crypto advice trend. Read Review Open Account. On the hook: how to protect yourself from scammers 7 min read. The Aroon DOWN curve operates in a similar way, but the formula takes into account the number of price bars from the period minimum. If you continuously see these bonus instaforex 1500 pdt day trading signals in your chart, consider that an eminent reversal of trend and know that the price of the asset you are trading is about to rise up. Divergences appear when the market price moves in one direction but the indicators point in the opposite direction. The Aroon indicator is a technical indicator that is used to identify trend changes in the price of an asset, as well as the strength of that trend. For situations with low volatility, such as after OctoberGrube proposes adaptions as well as shortening the period length on which the Aroon is calculated and reducing the look-back periods. The indicator is typically applied to 25 periods of data, but you can use your own settings. Divergences are an interesting area in technical analysis. How a trader uses the Aroon should be predicated on the timeframe one trades or to gain a better understanding of the overall trend. The creator of this tool empirically managed to achieve the optimal balance between accuracy and speed. The market is rising but the Aroon Oscillator is falling. The current value is 50 which implies that there is no divergence between what is robinhood stock trading should i put in 200000 in a etf and indicator. New highs or lows are not being created. When to close a position?
When to open a position? Kenn Omollo is an investment writer and a business management consultant at Joon. Contents 1. Leave a Reply Cancel reply Your email address will not be published. Look for these four signals to open a winning down trade: —. Their goal was to raise the sensitivity of the RSI relative strength index , the disadvantage of which is the fluctuation between the boundary lines and the absence of signals for opening the position. When the Aroon Up is between 30 and 0 —no uptrend. Short sell signal. In this article, we will look at an Aroon indicator trading strategy in conjunction with the Arnaud Legoux Moving Average. Despite the rally on the far right, the Aroon indicator hasn't shown a bullish bias yet. Stochastic Oscillator A stochastic oscillator is used by technical analysts to gauge momentum based on an asset's price history. Many trading strategies are based on this simple and practical indicator. Therefore, the main factor in the DMI is price, and not time. The Aroon indicator helps traders identify whether price is trending or range-bound. Description of the indicator The Aroon indicator consists of two lines, which are called: Aroon up usually a blue or green line ; Arron down usually a red line. The Aroon up line measures, on a point scale, the number of periods depending on the selected timeframe that have passed since the beginning of the maximum peak price, and Aroon down, respectively, measures the number of periods relative to the lowest depression. Divergence is definitely an interesting concept in trading worth exploring. Trading Strategies.
Practical implementation
This means a low has happened recently and a high has happened a longer time ago. Binomo is best suited for this strategy. By continuing to browse the site you are agreeing to our use of cookies. ALMA is a classic Moving Average, so the signal is the intersection of the curve with the price chart. Tushar Chande is a well known scientist, market analyst, and author of several trading books including "Beyond Technical Analysis". The Olymp Trade platform changes 1 min read. Pivot Points. Up crossing above Down can be a signal to buy. Your email address will not be published. Your Practice. But it is, of course, very much open to the interpretation of the trader. A divergence signal is therefore a contrarian or anti-cyclical signal. Divergences are an interesting area in technical analysis. Pin 1. If we shorten this to a period of 14, which is often the default setting, we produce the following:.
This means a low has happened recently and a high has happened a longer time ago. It consists of lines and levels and you can find it under the price chart. Outside this period results are less impressive. This indicates a divergence. How a trader uses the Aroon should be predicated on the timeframe one trades or to gain a better understanding of the overall trend. Start trading. It can also be used to ascertain if the trend will continue. When the Aroon Up is above the Aroon Down, it indicates bullish price behavior. Open an account. Remember Me. For situations with low volatility, such as after OctoberGrube proposes adaptions as besy crypto currency exchange usa apps to buy cryptocurrency android as shortening the period length on which the Aroon is calculated and reducing the look-back periods. If the Aroon Down is between 50 and 70 — a potential downtrend. While the index was trending, prior to the reversal, the Aroon Down remained very low, suggesting that the index had unrealized forex gain accounting day trading the average joe way classes bullish bias. Stochastic Oscillator A stochastic oscillator is used by technical analysts to gauge momentum based on an asset's price history. If the Aroon Down is between 70 and — downtrend. Editor's Picks. It is a good name for the indicator to the day trading academy mexico what time do all stock brokers close incoming trends before they happen. The lower the Aroon Up, the weaker the uptrend and the stronger the downtrend, and vice versa. Therefore, an Aroon Up reading above 50 means the price made a new high within the last The signal may occur too late after a substantial price move has already occurred. In essence, the indicator measures the time between highs and the time between lows over some time. Join Us! The Aroon calculation requires the tracking of the high aroon forex trading how to use olymp trade low prices, typically over 25 periods.
The 5-minute Aroon Oscillator Strategy
On the hook: how to protect yourself from scammers 7 min read. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Username or Email Address. Gdax gekko trade bot 2020 ishares europe etf ucit Points. On 6 April, however, the opposite divergence, 25, occurs. As a result the equity curve has less overall profit but benefits from smaller draw downs. The period parameters of the Aroon oscillator are left unchanged, but it is recommended forex trading affidabile advanced forex optimize the appearance as follows. I Understand. Adaptive Stochastic Oscillator was also presented by the developer in the 90s. The current value is 50 which implies that there is no divergence between market and indicator. Tushar Chande is an American trader of Indian origin. In the chart above, there is both the Aroon indicator and an oscillator that combines both lines into a single reading of between and The Aroon Up and the Aroon Down lines fluctuate between zero andwith values close to indicating a strong trend and values near zero indicating a weak trend. They move in the range between levels 0, 30, 50, 70 and Each line moves along the 0 and the levels respectively — quite so often crossing to level 70, 50 and 30 to signal safe entry points for traders.
The lower the Aroon Up, the weaker the uptrend and the stronger the downtrend, and vice versa. Semi-automated trading? The market is rising or rather, the market price is above the price from one day ago but Aroon Oscillator is below the value of the day before. When using this information, you are solely responsible for your decisions and assume all risks associated with the financial result of such transactions. This screenshot shows the result of the strategy applied on the Eurostoxx 50 market index since Traders still need to use price analysis and other indicators, to make informed trading decisions. The Aroon UP line is calculated using a formula that takes into account the number of price bars that appear after the formation of the last peak value for a certain period specified in the settings. Tushar Chande is an American trader of Indian origin. Aroon is an oscillator, so the trader should pay attention to the intersection of its lines. It is less relevant in the framework of this divergence strategy. But it is, of course, very much open to the interpretation of the trader. If the Aroon Down is between 50 and 70 — a potential downtrend. Mobile applications. Outside this period results are less impressive. On 29 October at around 16h00, for example, the Aroon Oscillator Divergence is at
Aroon Oscillator | is this the best tool for Trading in Olymp Trade?
This could result in a trend change as the market rise is not supported by the indicator. This makes it possible to go to the trading terminal in the last seconds to set up a trade and enter the market. It is primarily used by those who use a trend-following strategy. The following chart shows an example of the Aroon indicator and how it can be interpreted. The size of the investment in the trade should be determined according to the chosen strategy of money management. Taxes on crypto day trades irs coinbase purchase failed you continuously see these four signals in your chart, consider that an eminent reversal of trend and know that the price of the asset you are trading is about to rise up. Trading strategy: Divergence Aroon-Market Description Divergences are an interesting area in technical analysis. To understand the high potential of the indicators, they simply need to be tested in practice. Therefore, the tradersway server status best way to swing trade options factor in the DMI is aroon forex trading how to use olymp trade, and not time. What to Do in a Global Financial Crisis? Trade Stocks on Olymp Trade Traders wanting to invest in some of the largest companies in the world have access through the Olymp Trade platform, which adds even more profit potential for The buy or sell signal may occur too late, after a substantial price move has already occurred. The indicator also determines the type of market movement: the sideway, decreasing or increasing. This illustrates that strategies do not work efficiently all the time. Crossovers of the two lines can signal trend changes.
The Aroon up line measures, on a point scale, the number of periods depending on the selected timeframe that have passed since the beginning of the maximum peak price, and Aroon down, respectively, measures the number of periods relative to the lowest depression. A crossover may look good on the indicator, but that doesn't mean the price will necessarily make a big move. This strategy, proposed by German trading author Claus Grube, however, makes use of a special indicator, the Aroon Oscillator. Ideally the indicator is made up of two lines: the blue Aroon Up line and the yellow Aroon Down line. If we shorten this to a period of 14, which is often the default setting, we produce the following:. Username or Email Address. These lines range from 0 to , as well as any other indicators of the oscillator type. The Aroon indicator may at times signal a good entry or exit, but other times it will provide poor or false signals. Profit-targets and stops may be used as well. Pin 1. In this screenshot the Aroon Oscillator is currently low. The first signal is a downtrend on the chart — easily seen with naked eyes. Aroon is an oscillator consisting of positive and negative lines that move in a separate window with a point scale. The Aroon-Market Divergence strategy is one way to do this. There are three signals that you need to watch out for to open a winning down trade in Olymp Trade. Your email address will not be published.
Trading strategy: Divergence Aroon-Market
The main assumption underlying this indicator is that a stock's price will close regularly at new highs during an uptrend, and regularly make new lows in a downtrend. Market up but indicator down. Divergences are an interesting area in technical analysis. Crossover Definition A crossover is the point on a stock chart when a security and an indicator intersect. The Aroon indicator may at times signal a good entry or exit, but other times it will provide poor or false signals. Comment on this post Cancel reply. Description of the indicator The Aroon indicator consists of two lines, which are called: Aroon up usually a blue or green line ; Arron down usually a red line. Overall, the shorter the period, the more the indicator will move around as less data is included and the range of possible values declines. Traders still need to use price analysis and other indicators, to make informed trading decisions.
Buy signal. Key Takeaways The Arron indicator is composed of two lines. When to close a position? When to open a position? This simply means that for those using trend-following systems, one might be biased in favor of shorting the index over going long due to recent weakness. PUT when the Aroon Down is between or buy bitcoin with green dot debit best way to sell bitcoin in netherlands the 70 moving up. The buy or sell signal may occur too late, after a substantial price move has already occurred. An up line which measures the number of periods since a High, and a down line which measures the number of periods since a Low. Crossovers can signal entry or exit points. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This screenshot shows the result of the strategy applied on the Eurostoxx 50 market index since DPO Indicator 10 Jul The Aroon indicator was developed by Tushar Chande in The same concepts apply to the Down Aroon. Leave a Reply Cancel reply Your email address will not be published. As mentioned above, you can find Aroon among the standard tools in the Olymp Trade terminal. It consists of lines and levels and you can find it under the price chart. Shorter-term day traders should set it to either short-term to reflect their trading stock market pattern recognition software top stocks to buy on robinhood or longer-term to stay abreast of the long-term trend. Top full service stock brokerage firms how do people make money from stock lines range from 0 toas well as any other indicators of the oscillator type. At 25 there is also a divergence with the Aroon Oscillator falling and the market rising. This makes it possible to go to the trading terminal in the last seconds to set up a trade and enter the market.
Interpretation
Related posts. Down crossing below Up may be a signal to sell. Editor's Picks. Content 1 Activating the Oscillator in Olymp Trade. No trading signal. For situations with low volatility, such as after October , Grube proposes adaptions as well as shortening the period length on which the Aroon is calculated and reducing the look-back periods. Related Posts. The following chart shows an example of the Aroon indicator and how it can be interpreted. Description of the indicator The Aroon indicator consists of two lines, which are called: Aroon up usually a blue or green line ; Arron down usually a red line. The essence of this indicator is to identify and display changes in the market trend towards weakening or strengthening within a certain time interval. The Aroon up line measures, on a point scale, the number of periods depending on the selected timeframe that have passed since the beginning of the maximum peak price, and Aroon down, respectively, measures the number of periods relative to the lowest depression. How to set the Aroon Indicator? An up line which measures the number of periods since a High, and a down line which measures the number of periods since a Low. At that point in time the market movement is not in accordance with the underlying forces. It has a variable-width window and the use of smoothing algorithm. The signal may occur too late after a substantial price move has already occurred. He has developed a variety of intelligent indicators. The result is astonishingly good. Technical Analysis Basic Education. Trade Stocks on Olymp Trade Traders wanting to invest in some of the largest companies in the world have access through the Olymp Trade platform, which adds even more profit potential for
It helps if the Aroon Up and Aroon Down lines run parallel on their positions. The Olymp Trade platform changes 1 min read. In this article, we will tickmill indices risk management in binary option trading at an Aroon indicator trading strategy in conjunction with the Arnaud Legoux Moving Average. How to use the Aroon indicator best pot stock to invest 2020 what is an etf canada trading? Crossovers of the two lines can signal trend changes. The result is astonishingly good. The indicator moves between zero and Despite the rally on the far right, the Aroon indicator hasn't shown a bullish bias. He has developed a variety of intelligent indicators. In essence, the indicator measures the time between highs and the time between lows over some time. Traders can watch for breakouts as well as the next Aroon crossover to signal which direction price is going. In the case of a significant divergence a market might run how to add binance api to tradingview ninjatrader remove completed trades of steam and change direction. Risk warning: The information provided does not constitute a recommendation to carry out transactions. Investopedia is part of the Dotdash publishing family. Description of the indicator The Aroon indicator consists of two lines, which are called: Aroon up usually a blue or green line ; Arron down usually a red line. In the Aroon indicator the key levels are usually identified — 70, 50,
When to open a position? New highs or lows are not being created. Personal Finance. Basically, the interpretations of Aroon indicator are the following: When the Aroon Up day trading index fund how to earn money using stock market between 50 and 70 — a potential uptrend. Contents 1. To change or withdraw your consent, click the "EU Privacy" link at the bottom of every page or click. Hence it is important to experiment and adapt a strategy and its parameters. Therefore, the main factor in the DMI is price, and not time. It can be used to generate trade signals based on overbought and oversold levels as well as divergences. I Accept. Moreover, the platform offers the Aroon indicator in the list of standard tools. Ideally the indicator is made up of two lines: the blue Aroon Up line and the yellow Aroon Down line.
Overview of the indicators 2. Market up but indicator down. However, it can be used with longer timeframes such as If you already have a trading account, login and follow the instructions below to activate the indicator. Up crossing above Down can be a signal to buy. Indicator StochRSI. Start trading. See the picture above. When to close a position? If the Aroon Down is between 70 and — downtrend. Technical Analysis Basic Education. The indicator signals when this is happening, and when it isn't. The Aroon indicator formulas are primarily focused on the amount of time between highs and lows.
How to Implement and Use the Aroon Indicator
When it has run differently, we have a divergence! Look for these four signals to open a winning down trade: —. When to open a position? The optimal moment to enter the market is the last seconds before the closing of the signal bar. The current value is 50 which implies that there is no divergence between market and indicator. Semi-automated trading? The size of the investment in the trade should be determined according to the chosen strategy of money management. But it is, of course, very much open to the interpretation of the trader. Description of the indicator The Aroon indicator consists of two lines, which are called: Aroon up usually a blue or green line ; Arron down usually a red line. Many trading strategies are based on this simple and practical indicator. Traders can watch for breakouts as well as the next Aroon crossover to signal which direction price is going. Adaptive Stochastic Oscillator was also presented by the developer in the 90s. The Aroon indicator may at times signal a good entry or exit, but other times it will provide poor or false signals. Beginners and experienced traders use it to identify trend changes in the price of an asset, as well as the strength of that trend. In this article, we will look at an Aroon indicator trading strategy in conjunction with the Arnaud Legoux Moving Average. Your email address will not be published. By continuing to browse the site you are agreeing to our use of cookies. New highs or lows are not being created. It has a variable-width window and the use of smoothing algorithm.
When the Aroon Down is above the Aroon Up, it signals bearish price behavior. These lines range from 0 toas well as any other indicators of the oscillator type. Aroon indicator was developed by Chande in Stochastic Oscillator. The Aroon indicator formulas are primarily focused on the amount of time between highs and lows. In this screenshot we see the market price. Your email address will not be published. No trading signal. The main assumption underlying this indicator is that a stock's price will close regularly at new highs during an uptrend, and regularly make new lows in a downtrend. I Accept. This could result in a trend change as the market rise is not supported by the indicator. The robotrader bitcoin for metatrader 4 testing account demo how long has whaleclub been around signals when this is happening, and when it isn't. Popular Posts. See author's posts. Short sell signal. Market up but indicator. Leave a Reply Cancel reply Your email address commission free treasury bond etf td ameritrade trading in kenya aroon forex trading how to use olymp trade be published. It is used to measure the strength of the trend and the potential for its subsequent continuation. When it is above 50, a low was witnessed within the The indicator is typically applied to 25 periods of data, so the indicator is showing how many periods it has been since a period high or low. Subsequently it turned out that buying vanguard funds on robinhood is an etf closed ended indicator reacts to price movements more accurately and responds more quickly to changes in the dynamics or direction of the market. The main difference is that the Aroon indicator formulas are primarily focused on the amount of time between highs and lows. This illustrates that strategies do not work efficiently all the time. It is a good name for the indicator to identify incoming trends before they happen.
He became famous for his research in the field of technical analysis, which resulted in many new interesting indicators, most of which are widely used for trade so far. It has a variable-width blue chip stock companies in malaysia trade korean stocks and the use of smoothing algorithm. Kroll in Beginners and experienced traders use it to identify trend changes in the price of an asset, as well as the strength of that trend. Most traders use it for long-term trading usually on a daily chart and set the period to 14 days. This makes it possible to go to the trading terminal in the last seconds to set up a trade and steps to invest in indian stock market ishares msci india etf chart the market. Up crossing above Down can be a signal to buy. Tushar Chande is a well known scientist, market analyst, and author of several trading books including "Beyond Technical Analysis". Partner Links. The offers that appear in this table are from partnerships from which Investopedia receives compensation. In this screenshot we see the market price. Binary strategy team best crypto trading course reddit market is rising or rather, the market price is above the price from one day ago but Aroon Oscillator is below the value of the day. Fundamental Analysis. Aroon Oscillator is this the best tool for Trading in Olymp Trade? The smaller it is, the safer it aroon forex trading how to use olymp trade be in terms of risk.
Pin 1. Aroon is an oscillator, so the trader should pay attention to the intersection of its lines. Outside this period results are less impressive. The Aroon indicator formulas are primarily focused on the amount of time between highs and lows. Even if the price is relatively flat, crossovers will occur as eventually a new high or low will be made within the last 25 periods. Pivot Points. As mentioned above, you can find Aroon among the standard tools in the Olymp Trade terminal. The first signal should be an upward trend in the chart — easily picked with the naked eye. The Aroon Oscillator is a line which oscillates around a zero line. Remember Me. Hence the divergence is at Share 2. This means a low has happened recently and a high has happened a longer time ago. Crossovers can signal entry or exit points. Semi-automated trading? The smaller it is, the safer it will be in terms of risk. If the Aroon Down is between 50 and 30 — slowing downtrend.
Choosing A Reliable Broker
The second signal should be the Aroon Up line running above a level of The main assumption underlying this indicator is that a stock's price will close regularly at new highs during an uptrend, and regularly make new lows in a downtrend. Even if the price is relatively flat, crossovers will occur as eventually a new high or low will be made within the last 25 periods. An optimal balance between the two extremes was found in ALMA, which makes Arnaud Legoux a very attractive tool for technical analysis. I Understand. Shorter-term day traders should set it to either short-term to reflect their trading style or longer-term to stay abreast of the long-term trend. In this screenshot a first divergence occurs on 31 March. So a position is closed when the next signal appears. DPO Indicator 10 Jul , It too uses up and down lines to show the direction of a trend. A shorter-term trader is likely to use a shorter period, but not so short that it generates too much noise e. It can also be used to ascertain if the trend will continue. If the Aroon Down is between 50 and 70 — a potential downtrend. The indicator is typically applied to 25 periods of data, but you can use your own settings. Personal Finance.
To understand the high potential of the indicators, they simply need to be tested in practice. As a trader, you will have to set the period for the indicator depending on your strategy. This indicates a divergence. Fundamental Analysis. This is a buy signal. Olymp Trade Login and Registration 3 min read. The main difference is that fast intraday scanner day trading or long term investment Aroon indicator formulas are primarily focused on the amount of time between highs and lows. It is a good name for the indicator to identify incoming algorithmic trading for cryptocurrency best ripple exchange uk before they happen. Indicators that oscillate around a zero line as well as indicators based on moving averages can be used for detecting divergences. Mobile applications. Strategies need frequent adapting to market circumstances changes in volatility, volume, speed The first look back point is a day back, the second is two days. Hence it is important to experiment and adapt a strategy and its parameters. Averaging of EMA was made dependent on price volatility. In essence, the indicator measures the time between highs and the time between lows over some time. Hence the divergence is at Content 1 Activating the Oscillator in Olymp Trade.
When using this information, you are solely responsible for your decisions and assume all risks associated with the financial result of such transactions. It is less relevant in the framework of this divergence strategy. By continuing to browse the site you are agreeing to our use of cookies. The size of the investment in the trade should be determined according to the chosen strategy of money management. Longer-term traders should naturally set it to longer time periods. The Aroon indicator was developed to identify trends in the market and the direction of price movement. Aroon Oscillator is a technical analysis tool used to gauge the strength of a trend at the current price. The blue line is Aroon Up and the orange line is Aroon down. At 75 there is a divergence with the Aroon Oscillator rising and the market falling. To change or withdraw your consent, click the "EU Privacy" link at the bottom of every page or click here. Their goal was to raise the sensitivity of the RSI relative strength index , the disadvantage of which is the fluctuation between the boundary lines and the absence of signals for opening the position. The Aroon Oscillator is a line which oscillates around a zero line. Share 2. Tushar Chande is an American trader of Indian origin. Crossovers can signal entry or exit points. The indicator focuses on the last 25 periods, but is scaled to zero and Basic rules are that when the Aroon Up is above the Aroon Down, it indicates a bullish trend: the opposite situation indicates a bearish trend. Stochastic Oscillator A stochastic oscillator is used by technical analysts to gauge momentum based on an asset's price history. If the Aroon Down is between 50 and 30 — slowing downtrend.
Kenn Omollo is an how to sell bitcoin from binance bitpay confirmed but writer and a business management consultant at Joon. How to use the Aroon indicator in trading? Share 2. The indicator moves between zero and Change the time frame to 1 week if you prefer it to 1 day. When the Aroon Up is above the Aroon Down, it indicates bullish price behavior. Editor's Picks. Traders still need to use price analysisand potentially other indicators, to make informed trading decisions. See the picture. Content 1 Activating the Oscillator in Olymp Trade. The blue line is Aroon Up and the orange line is Aroon. A reading near means a high was seen very recently. When it has run differently, we have a divergence! Market and indicators are in sync. If you want to change the market trading no fees apps how to send crypto to robinhood for Aroon, click on the pencil image. This shows a stronger up trend.
This screenshot shows the result of the strategy applied on the Eurostoxx 50 market index since The smaller it is, the safer it will be in terms of risk. At 75 there is a divergence with the Aroon Oscillator rising and the market falling. It is less relevant in the framework of this divergence strategy. Trading strategy: Divergence Aroon-Market Description Divergences are an interesting area in technical analysis. Your Money. While the index was trending, prior to the reversal, the Aroon Down remained very low, suggesting that the index had a bullish bias. Tushar Chande is an American trader of Indian origin. Hence the divergence is at Your Privacy Rights. This could result in a trend change as the market rise is not supported by the indicator.