Aroon Cryptocurrency Indicator Analysis and Aroon Bitcoin Indicator Signals

Developed by Tushar Chande

This btcusd indicator is used to determine if a trading instrument is trending or not.

It is also used to indicate how strong the bitcoin trend is.

It is also used to identify the beginning of a trend, the name its name which means morning or dawn.

This btcusd indicator has two lines:

• Aroon UP Indicator
• Aroon DOWN Indicator

Aroon UP Indicator

Percentage of time between the start of a time period and the highest point that btcusd price has reached during that period.

If btcusd price sets a new high, Aroon UP Indicator will be 100 - for each new high it will stay at 100. However, if btcusd price moves down by a certain percentage, then that percentage is subtracted from the 100 and Aroon UP Indicator starts to move down. This means that if Aroon UP Indicator stays at 100 then btcusd price is making new highs but when it starts to move down then btcusd price is not making new highs.

If however btcusd price is making new lows for a particular btcusd price period then Aroon UP Indicator will be at zero

Calculation

Aroon UP Indicator is a percentage of time between btcusd price period and highest point.

If you use 10 btcusd price periods for calculation:

Example 1: Highest btcusd price was 1 day ago

Then if the highest point was yesterday, i.e. 1 day before then

10 btcusd price periods minus 1 day= 9

9/10 in percent terms = 90

Aroon UP Indicator will be at 90

Example 2: Highest btcusd price was 5 days ago

If the highest point was 5 days ago then

10 btcusd price periods minus 5 = 5

5/10 in percent = 50

Aroon UP Indicator will be at 50

Aroon DOWN Indicator

This is calculated the same as Aroon UP Indicator but this time using the lowest point instead of the highest point.

When a new low is set Aroon DOWN Indicator is at 100 and when a new high is set it will move to zero.

Bitcoin Trading Analysis and Generating Bitcoin Trading Signals

This btcusd indicator uses the 50 % level to measure momentum of the trend.

Buy Bitcoin Trading Signal and exit signal

Aroon UP Indicator above 50 is a technical buy bitcoin trading signal

Aroon UP Indicator dipping below 50 is an exit signal if you had opened a buy bitcoin trade.

Sell Bitcoin Trading Signal and exit signal

Aroon DOWN Indicator below 50 is a technical sell crypto signal.

Aroon DOWN Indicator rising above 50 is an exit signal if you had opened a sell bitcoin trade.

Buy and Sell Bitcoin Trading Signals