#3 Aroon Pullback & Trend Trading Strategy
The Aroon-Up continuous reading close to the 100 level is an indication of a very strong trend. However, at some point in time one or two trade scenarios can happen:
To expect a trend reversal
Or, to expect a pullback
The Aroon interpretation of this type of reading suggests that we’ve been forming these higher highs for...
#1 Aroon Breakout Trading Strategy
How to spot consolidation and trade breakouts with Aroon?
When Aroon Up and Aroon Down lines are parallel to each other it’s a signal that
the price is consolidating. The Aroon interpretation is that no new highs or lows are made during the default period.
You have two options to trade consolidations.
Wait for the breakout to...
A short-term decline pattern is partially formed with lower high of price and higher high of RSI. Still need comfirmation from Composite Index and Aroon indicator.
If the price do not go straight up continuously, say, up to 4200, the decline is due to happen.
5% decline is 3700 and 10% is around 3615.
A divergence of trend between RSI and price is forming on 1day chart. This is a bullish pattern. In the meantime, another bullish pattern appears on the 1hour chart, with price low becoming higher and RSI low keeping going down.
Currently, there's no buy signal yet.