THE SWING•GENIE AROON INDICATOR
AROON TREND DETECTION
The Aroon indicator is used to identify trend changes in the price of an asset, as well as the strength of that trend. The indicator measures the time between highs and the time between lows over a time period of your selection. The idea is that strong uptrends will regularly see new highs, and strong downtrends will regularly see new lows. The indicator signals when this is happening. You can adjust the time frame between the new highs or new lows in the setting/input panel.
New historical highs are often a very strong indications of strong momentum in an equity. Because a large number of individual are looking for this as an indication of a good entry point, it often become a spring board for a new trend.
AROON LEVEL INDICATIONS
The SWING•GENIE AROON indicator was developed to provide strong color bands at each of the levels that are indicated a key levels by the developers of the indicator. It also allows you to see at a glance if the trend is up or down by just looking at the color of the top line. Green and the trend is up, red and the trend is down. There are a large number of excellent articles online that you can easily find.
Many paid news letters hype that their magical “X” marks the spot is so miraculous that you should be paying to obtain their advice on when this profitable signal appears. They are just selling you the Aroon indicator when it signals a new high, repackaged with a little hocus-pocus marketing. You can read about one such paid campaign here.