Majority Rule (Aroon) Indicator – FX Replay Guide

The Aroon Indicator, also known as the Majority Rule Indicator, tracks how recently a high or low has occurred within a user-defined period. It’s ideal for identifying trend strength, reversal shifts, and consolidation zones, making it perfect for strategy filtering and backtesting inside FX Replay.

How to Use It in FX Replay

Add the Indicator:

• Go to Indicators.
• Search for “Aroon” or “Majority Rule Indicator”.
• Apply with a standard 14-period setting or adjust based on your strategy timeframe.

Read the Lines:

• Aroon Up (green):
  Closer to 100 = strong recent high → bullish signal.
• Aroon Down (red):
  Closer to 100 = strong recent low → bearish signal.
• Both near 50 or lower:
  Choppy market or range condition.

Trading Signals

• Bullish Trend Shift:
  Aroon Up crosses above Aroon Down.
  → Consider long setups aligned with VWAP reclaim, FVG support, or Alligator trend.
• Bearish Trend Shift:
  Aroon Down crosses above Aroon Up.
  → Look for shorts near structure breaks or resistance zones.
• Consolidation Filters:
  Both lines flat and below 50 = avoid trades or prep for range breakout.
  → Use this to avoid getting chopped in low-volatility zones.

Backtesting Tags and Strategy Ideas

Tag entries by crossover condition:

• “Aroon Bull Cross + SMMA Uptrend”
• “Aroon Bear Cross + NY Open Break”

Backtest entry performance based on Aroon alignment with:

• Price structure
• Session cycles (e.g., AMD 90, NY AM)
• Volume spike or RSI confirmation

Pro Tip

In FX Replay, Aroon is a low-lag trend tool ideal for:

• Spotting early trend shifts before structure breaks.
• Avoiding low-probability setups during chop.
• Confirming trend bias for multi-timeframe setups.

Use it as a filter or trigger layer when designing backtest logic, especially with tools like VWAP, Alligator, or SMMA for enhanced directional confidence.