The Aroon indicator is used best by traders and investors interested in whether or not a trend is still intact. It can help traders avoid inefficient use of capital by allowing them to seek other opportunities during sideways markets and only hold positions during strong trends. However, it is important to watch carefully and analyze stocks using other studies in conjunction with Aroon to avoid the primary weakness in this system – sharp price movements.
Investors may prefer the oscillator because it is easier to read and tends to have less contradictory signals. Meanwhile, active traders may appreciate the additional information given by the two indicators. It is up to you to determine which methodology works best for your needs and apply it to your own trading. They both offer an excellent way to determine whether a trend exists, and how strong that trend is.
Aroon Indicator
Properties that can be edited
Example of Chart with Aroon Indicator Study
Aroon Oscillator
Properties that can be edited
Example of Chart with Aroon Oscillator Study
