Instead of reading the price action, the Aroon indicator tells traders that whether the market trend is bullish or bearish. It also shows the ranging condition of the market. In the sideways market movement, a retail trader should avoid trading in that period.
Working of Aroon mt4 indicator
The Aroon indicator’s value range from 0 to 100. It always oscillates between this range. The indicator consists of two lines
- Aroon up
- Aroon down
Redline is used to indicating Aroon down and the blue line is used to indicate Aroon down line. The value of lines shows the price trend on the chart.
- If Aroon up is close to 100 and aroon down is close to 0, then the price trend is bullish
- If Aroon up is close to 0 and aroon down is close to 100, then the price trend is bearish
Price will move sideways if Aroon up and Aroon down are moving parallel to each other.
Also, learn about the TDI indicator
Indicator input values
The aroon mt4 version indicator consists of three input values.
- Aroon period
- Mail alert
- Sound alert
The default value of the Aroon period is 14 but we will recommend you to change it to 25. Because 25 is the optimum value and it gives good results in this setting.
Aroon indicator alert feature
This MT4 indicator also has an alert feature so you don’t miss any opportunity. The Alert feature will help you whenever a crossover will happen it will alert you. Crossover means a change of trend. This is an excellent feature of the Aroon indicator and you will get it free.
How does aroon indicator generate signals?
The main feature of the aroon mt4 indicator is to identify trend reversal. The crossover between Aroon up and Aroon down decides the direction of the price trend.
Bullish trend reversal
When Aroon up crosses the Aroon down line then the trend reverses from bearish into a bullish trend. It is a buy signal.
Bearish trend reversal
When Aroon down crosses the Aroon up line then the trend reverses from bullish to bearish direction. It is a sell signal.
You can also add other confluences like candlestick patterns and price action strategies with the Aroon indicator to increase the winning probability.
After the price action reading, the best indicator that is used to identify market trends on the candlestick chart is aroon. It is easy to use and install on MetaTrader 4 platform. You can analyze the market trends using Aroon in mt4 with little effort because of the alert system. So you don’t need to sit in front of a screen all the time.Download