The Aroon Oscillator was developed by Tushar Chande in 1995 as part of the Aroon Indicator system. Chande's intention for the system was to highlight short-term trend changes. The name Aroon is derived from the Sanskrit language and roughly translates to “dawn's early light.” The traditional Aroon indicator is a technical indicator that is used to measure the strength of a trend. It is plotted as two separate lines on a chart, one for up trends and one for down trends. The Aroon indicator is based on the number of periods since the most recent high or low in the price of an asset. The Aroon Up line indicates the strength of an up trend and is calculated by dividing the number of periods since the most recent high by the total number of periods in the calculation period. The Aroon Down line indicates the strength of a down trend and is calculated by dividing the number of periods since the most recent low by the total number of periods in the calculation period.  The Aroon indicator is plotted with a range of 0 to 100. A reading above 70 on the Aroon Up line or below 30 on the Aroon Down line is generally considered to indicate a strong trend. Conversely, a reading below 30 on the Aroon Up line or above 70 on the Aroon Down line is generally considered to indicate a weak trend or trend reversal. Traders often use the Aroon indicator in conjunction with other indicators to confirm the strength and direction of a trend. It can be a useful tool for identifying potential entry and exit points in a trade. The AROON oscillator from the Jackrabbit suite and modulus framework supports differential timeframe analysis and confirmational bias. Dynamic timeframes are supported. This is an updated view of AROON and supports traditional overbought/sold boundaries and cross over regions. The main indicatior and the confirmational indicator can both be
individually tuned for the length and smoothing, with 30 different moving
average types:
The Jackrabbit modulus framework is a plug in play paradigm built to operate through TradingView's indicator on indicatior (IoI) functionality. As such, this script receives a signal line from the previous script in the IoI chain, and evaluates the buy/sell signals appropriate to the current analysis. The results are either combined with the signal line, or used as confirmation to the signal line. A new signal line is generated for the next script in the link. Buy/Sell alerts are produced, but this script is not designed or meant to function outside my framework. By default, the signal line is visible and the charts are turned off. Signal line visibility is controlled by the Style tab, and the charts display is controlled by the indicator settings tab. This script is part of a subscription along with 20 other scripts that make up Jackrabbit TV. For more information, please visit my patreon site. |
|
