Understanding Aroon Indicator - Part 2

in hive-175254 •  4 months ago 

Hello everyone, hope you all are doing good? I'm back with the Part 2 of this amazing series, Understanding Aroon Indicator. If you haven't read the Part 1, I strongly suggest you do that by clicking here. In today's article, we would be understanding the Aroon Oscillator & how it works and how to detect a market trend and strength.



The Aroon Oscillator isn't same with Aroon indicator, as it is the difference between the Aroon-Up and Aroon-Down. The Aroon indicator ranges between 0 - 100 but the Aroon Oscillator ranges between -100 to 100.

The Aroon Oscillator does the same function of the Aroon indicator, as they both help traders predict market trends and strength of the market. But the Aroon Oscillator has a better parameters that helps traders know the strength of a market.

If Aroon Oscillator is -50 and lower, it indicates a strong bearish trend and if the Aroon Oscillator is 50 and above, it indicates a strong bullish trend. Lastly, if the Aroon Oscillator is 0, it indicates that the market is consolidating. With some images below, you will have more understanding of the Aroon Oscillator.


As you can see from the image above, whenever Aroon Oscillator is above 50, there's a bullish trend and whenever it below -50, there's a bearish trend.

How To Detect A Market Trend & Strength

Whenever the Aroon oscillating line is at +50 and -50, it signify the market trend and market strength.

If the Aroon oscillating line is moving upwards towards +50, it signifies a bullish trend and once it is over +50, it signifies a strong bullish trend. That is a buy signal for traders. Take a look at the image below for more understanding.


If the Aroon oscillating line is moving downwards towards -50, it signifies a bearish trend and once it is over -50, it signifies a strong bearish trend. An opportunity for traders to sell. Take a look at the image below for more understanding.



Thanks For Reading

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hello @menoski,
one of the things that interest me about the indicators, is that they allow you to recognize market trends, I believe that the more understanding you have of the indicators the better decisions you can make, for long term investors to know the market trends is essential to make decisions that will generate profits in the future.

Nice comment @trabajosdelsiglo. To me, I mainly use indicators to make short term decisions, make quick profit from the reaction of the market and indicators will help during those times. But long term decisions, I mainly based it on the project team members, project's roadmap and lastly the utilities which the project will provide. I believe that's way better. For example, I believe in the future of EGC coin, regardless the massive dip, I don't care, because I invested in the project for the future.

Thanks for your excellent comment @trabajosdelsiglo

Greetings @menoski _
Being able to have knowledge of the indicators will help to make a better decision when making any investment in cryptocurrencies, it is also important not only to see a single indicator, as that will mark the investor's strategy.
Thank you very much for sharing your publication

Nice comment @dgalan. But when it comes to investment in crypto assets, we should pay more attention to the project team members, project's roadmap and lastly the utilities which the project will provide. Indicators are mostly used for trading in short term view, but investment should be long term. Even with a big dip in price, if you trust a project, you will hodl your bags and add on it and that's how we can make it big through investment in crypto assets.

Thanks for your brilliant comment.

Greetings @menoski ❤️💕

It's really my first time learning about the Aroon indicator and Aroon oscillator when it comes to predicting the crypto market. I'm mostly familiar with RSI and MACD even though i still have plans of learning Bollinger indicator too but with what I've read it's seems I'm developing more interest using Aroon as an indicating tool to predict the crypto market system.

Thanks for sharing this great post with love from @hardaeborla and and I hope you have a great day ahead ❤️💕❤️

There are quite a lot of good indicators out there. RSI and MACD are also very good indicators. You can learn as many as you can but ensure you can make use of them in real life events. We need 3 good indicators to be a successful trader. Master those 3 to perfection and we are good to go. It sounds so easy but so difficult to accomplish.

Thanks for your nice comment @hardaeborla

Your post has been successfully curated by our team through @shemul21. Thank you for your committed efforts, we invite you to do more and continue to post high-quality posts for a chance to win a valuable upvote from our curating team and why not be selected for an additional upvote later this week in our Top Seven.

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Thanks for the curation @shemul21 and @steemcurator05. I will definitely start making use of the #fbcrypto tag and will continue to produce high-quality contents.

Hello friend, it is very important to confirm trends as soon as possible to make the decision to enter or exit the market at the right time, and this indicator shows us easy to interpret signals.