Image sources: instaforex.
It is based on Aronn Indicator and developed by Tushar Chande. As it generates few signals, it is advisable to use it with the combination of Aroon Indicator.
When the Oscillator is above the 50 level, we can take it as very strong bullish trend.
If it is below -50 level, it is very strong bearis trend.
While using the Aroon Oscillator, it is better to take ZERO level also into consideration. If it is bellow Zero level, the bearish trend may continue. In the same way, if it is above the Zero level, the Bullish trend may continue.
