Apply an Aroon Up/Down Indicator
Aroon up” and “Aroon down” are the two components that comprise the Aroon indicator. Assuming that an asset is trending up when a stock is trading near the high of its range, Aroon up is used to measure the strength of the uptrend, while Aroon down is used to measure the strength of the downtrend. A cross above the zero line may suggest the beginning of a new uptrend. Conversely, a cross below zero could indicate the start of a downtrend. Readings near zero suggest that a security may be trending sideways and that this period of consolidation may continue.
To apply an Aroon Up/Down Indicator
- From within a chart, from the Edit menu select Studies.
- Choose Aroon Up/Dn and click Add to add the study to the Applied Studies group.
- Complete parameters as necessary.
Once the study is defined, you can elect to uncheck/check to remove and add the study to your chart.