Who the devil is Aroon?

Aroon is not a ‘who’. Aroon is an indicator of momentum in the markets. But it does more than show momentum. It is about time-momentum which is a novel and under-appreicated concept. The Aroon was developed by Tushar Chande  (PhD in Engineering and MBA at the time). In 1995 Chande first published his ideas on the Aroon, in Stocks & Commodities – a most respected journal contributed to by people of exceptional qualifications and trading experience.

Traditional concepts about momentum think about price-momentum. Time-momentum needs a different kind of understanding and that can only come by interacting with trading platforms. As we don’t do tutorials here on this site, those interested in learning more should Google the Aroon and start here.

The videos below created at NewTrader are very rough and ready. Even if 50% correct it shows how significant gains can be made using the Aroon indicator. At the end of this post is a link to a YouTube video that show how some people are capitalising on hopefuls looking to make some money.

The Aroon does not make money for you!! You make money for you, if you use the Aroon correctly. I’m only posting some positions of equity based on Aroon setups. This does not mean you should rush out and trade based on Aroon. Read our SYP!.

Aroon is not a quick route to riches. Overall success in terms of profits from trend-following strategies, require assessment over about 6 months to 1 year. The screenshot below is not indicative of the performance of the Aroon. The Aroon does not perform! You do – or not.


How does the Aroon work? This is my own summary which has nothing to do with mathematics. The indicator assesses the price at intervals. It can be easily tweaked to assess 14 or 25 candles back (or any number you fancy) with three or four keyboard clicks. It does the math for you in the background and then separates out whether there is bullish or bearish momentum in terms of time. Indicators like the RSI and MACD look more at price momentum. The beauty of Aroon is that it’s pretty clear about which way time momentum is going, once you follow some very basic ideas about it.

Aroon is used for trend-following strategies. That means, it, and you, are only interested in finding early establishment of trends. Of course trends can change and it will give you a fair idea when that has happened. I re-emphasise ad nauseum, we do not do tutorials on this site.

Who’s trying to make money from Aroon? See here. I happened upon this video about 4 months ago and wondered what indicator was being used. [Just to be clear: Newtrader.club is not promoting any service offered in that video. We suggest extreme caution with any service offered at any link we show at this site.]

The information provided herein is opinion only. Under no circumstances do any statements here represent a recommendation to buy or sell securities or make any kind of investment. You are responsible for your own due diligence. To summarise, we do not provide investment advice, nor do we make any claims or promises that any information here will lead to a profit, loss, or any other result. All materials are for educational purposes only. We are clear in our SYP.





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