Glossary
Courses & Webinars
Economic events
Modules
  1. Home
  2. Glossary
  3. Aroon Index

Aroon Index

Developed by Tushar Chande. A technical analysis indicator used to determine a change in the direction of a financial instrument and measure the strength of the trend during a trending market. It consists of two lines: the Aroon Up and the Aroon Down. The calculation of Aroon Up is: n - (periods since highest high in "n+1" periods) * 100 / n.Similarly, Aroon Down is calculated as: n - (periods since lowest low in "n+1 periods) * 100 /n. The Aroon indicator is interpreted as follows: when Aroon Up is between 70 and 100 an uptrend is signaled. Similarly, a reading between 0 and 30 for the Aroon Down, indicates a downtrend. When the two lines move parallel to each other, then a consolidation may follow. A breakout of the consolidation is expected when the two lines cross over or move to an extreme level like 0 and 100. Anticipation of trending markets is signaled by the crossover of the two lines. When the Aroon Up crosses above the Aroon Down then an uptrend is likely to follow. On the other hand, when the Aroon Down crosses below the Aroon Up, then a downtrend is expected.
Need Help? Visit our Help Section

Copyright © 2024 – All rights reserved.

NAGA is a trademark of The NAGA Group AG, a German based FinTech company publicly listed on the Frankfurt Stock Exchange | WKN: A161NR | ISIN: DE000A161NR7.

The website is operated by JME Financial Services (Pty) Ltd an authorised Financial Services Provider, regulated by the Financial Sector Conduct Authority in South Africa under license no. 37166. JME Financial Services (Pty) Ltd is located at Suite 10, 21 Lighthouse Rd 201 Beacon Rock, Umhlanga Rocks, Kwa-Zulu Natal, 4320, South Africa.

JME Financial Services (Pty) Ltd acts as an intermediary between the investor and NAGA Capital Ltd, the counterparty to the contract for difference purchased by the Investor via Naga.com/za. NAGA Capital Ltd is authorised and regulated by the Financial Services Authority Seychelles (FSA) under licence No. SD026. NAGA Capital Ltd is the principal to the CFD purchased by investors on this website. Other group entities: NAGA Markets Europe LTD which is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC) under licence No. 204/13.

RISK WARNING: Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money. The value of financial products can increase as well as decrease over time, depending on the value of the underlying securities and market conditions. Illustrations, forecasts or hypothetical data are not guaranteed and are provided for illustrative purposes only. JME Financial Services (Pty) Ltd does not render advice in respect of the CFD’s offered on this website. Before making an investment decision, you should rely on your own assessment. The Company’s disclaimer, conflict of interest policy are available on legal documents section.

Trading with NAGA Trader by following and/or copying or replicating the trades of other traders involves high levels of risks, even when following and/or copying or replicating the top-performing traders. Such risks include the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Before making an investment decision, you should rely on your own assessment of the person making the trading decisions and the terms of all the legal documentation.