Aroon Indicator – FX Replay User Guide
The Aroon Indicator is a momentum-based tool that helps you quickly identify trend direction, strength, and potential reversals while reviewing price action on FX Replay.
What It Does
The Aroon consists of two lines:
Aroon Up: Shows how recently the last high occurred
Aroon Down: Shows how recently the last low occurred
Both values are plotted between 0 and 100.
How to Use It on FX Replay
Trend Detection: When Aroon Up is above Aroon Down, you're likely in an uptrend. When Aroon Down is higher, it's a downtrend.
Trend Strength: A line near 100 signals a strong trend. The closer either line is to zero, the weaker the momentum.
Consolidation Zones: If both lines are under 50, the market is likely ranging or lacking direction.
Trading with Aroon on FX Replay
Trend Entries: Use the Aroon crossover as an early signal for potential trend entries. For example, if Aroon Up crosses above Aroon Down and stays above, that’s a sign of growing bullish momentum.
Avoid False Breakouts: If both lines stay low for an extended period, price may be stuck in consolidation — be cautious of breakout traps.
Pair with Price Action or Indicators: Use Aroon in conjunction with a moving average or support/resistance zone to confirm direction before entering trades.
Exit Strategy: If you’re in a trade and see Aroon lines converge or flip, consider tightening stops or planning an exit — the trend may be fading.