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Monday, October 29, 2007

Aroon Oscillator

overview

The Aroon Oscillator is derived from the Aroon Indicator. The Aroon Oscillator is constructed by subtracting Aroon(down) from Aroon(up). Since Aroon(up) and Aroon(down) oscillate between 0 and +100, the Aroon Oscillator oscillates between -100 and +100.

Interpretation

The Aroon Oscillator indicates and upward trend when it is above zero and a downward trend when it is below zero. The farther away the oscillator is from the zero line, the stronger the trend.

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