In the realm of stock market analysis, the Aroon indicator is a widely used technical tool that provides valuable insights into market trends.
Derived from ancient Vedic astrology, Aroon is a Sanskrit word that means \“dawn\“. It is believed that the indicator helps traders to identify the early stages of a new trend.
The indicator consists of two lines - Aroon Up and Aroon Down. The Aroon Up line measures the time since the highest closing price for the selected time period, while the Aroon Down line measures the time since the lowest closing price.
Traders use the Aroon indicator to gauge the strength of a trend and determine if a trend reversal is imminent.
For instance, if the Aroon Up line is above the Aroon Down line, it indicates a bullish trend. Conversely, if the Aroon Down line is above the Aroon Up line, it suggests a bearish trend.
In this article, we delve into the Aroon indicator\“s relevance in Indian stock market trading and how it can help Indian traders make informed decisions. |
