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Want to Speak Crypto?
ATAIX glossary all you need to know.
Are you new to the cryptocurrency world and feeling a bit lost? Don't worry, you are not alone. The cryptocurrency space can be daunting for newcomers, with its many terms, abbreviations and definitions that can be difficult to understand.
ATAIX crypto glossary will help make sense of some of the most common cryptocurrency terms and definitions. Armed with this information, you'll be ready to start participating in this exciting and innovative new economy!
A
- 51% attack
- Accumulation / Distribution Indicator
- Adam Back
- Address
- Airdrop
- Algorithmic Stablecoin
- All-Time High
- Altcoin
- Altcoin Trader
- Anarcho-Capitalism
- Angel Investor
- Anonymous
- Apeing
- API
- Arbitrage
- Aroon Indicator
- ASIC-Resistant Coins
- Asset-Backed Tokens
- Atomic Swap
- Auction
- Audit
- Automated Market Maker (AMM)
- Average Directional Index (ADX)
What is Aroon Indicator?
The Aroon indicator is a technical analysis tool that Tushar Chande developed in 1995. It is used to measure the strength of a trend and can be applied to any time frame. The indicator consists of two lines, the Aroon Up line and the Aroon Down line.
The Aroon Up line measures the number of days it has been since the most recent high was reached, while the Aroon Down line measures the number of days it has been since the most recent low was reached. A reading of 100 on either line indicates that the security is currently at its high or low for that period.
The indicator can be used to identify potential reversals and help confirm other technical indicators. For example, if the Aroon Down line crosses below the Aroon Up line, that can be used as a signal to enter into a short position. Additionally, traders can use the indicator in conjunction with RSI or MACD to identify overbought or oversold conditions.
Whether you're new to cryptocurrency trading or already an experienced trader, the Aroon indicator can be a valuable tool for identifying trends and timing your trades effectively. So if you're looking to gain a deeper understanding of this essential technical analysis tool, check out our comprehensive guide on the Aroon indicator today!
How to Calculate Aroon Indicator Values?
The Aroon Indicator is a popular technical indicator that can be used to gauge the strength of a trend. The indicator is made up of two lines, the Aroon Up line and the Aroon Down line. These lines help traders identify the start and end of trends and the strength of those trends.
Here’s how you can calculate the Aroon Indicator using the following formulas:
Choose a specific period “X” for the “Aroon Indicator”
- AroonUp = 100 * ((X – Number of periods since highest high)/X);
- AroonDown = 100 * ((X – Number of periods since lowest low)/X);
The Aroon Up line is calculated by taking the number of days since the most recent 25-day high and dividing it by 25. The Aroon Down line is similar, but it takes the number of days since the most recent 25-day low and divides it by 25.
If both lines are close to 100, it means that the trend is strong. If the Aroon Up line is close to 100 and the Aroon Down line is close to 0, it means that the trend is bullish. And if the Aroon Down line is close to 100 and the Aroon Up line is close to 0, it means that the trend is bearish.
The Aroon Indicator can also be used to identify reversals. If the Aroon Up line moves below 50 after being above it, it could be a sign that the uptrend is losing steam. Likewise, if the Aroon Down line moves above 50 after being below it, it could signify that the downtrend is coming to an end.
Traders often use the Aroon Indicator in conjunction with other technical indicators, such as moving averages and chart patterns, to confirm or refute signals and identify opportunities for entries and exits. Whether you're looking to trade cryptocurrencies like Bitcoin or traditional assets like stocks, the Aroon Indicator can be a valuable tool for identifying trends and making informed trading decisions.