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N,
Basically, Aroon is a day or bar counter. If you are using EOD then a
week is 5 days. The Aroon will look over the last number of days and
tell you how many are up if you are using the Aroon Up indicator.
Remember that an uptrend is made up of higher highs and higher lows.
You would expect the Aroon Up to be above 70 percent.
I am afraid that "Persistently" is a matter of personal taste
dependant on your trading style.
Here's some information that you may find useful.
{Aroon}
D:=Input("Periods",1,999,14);
100*(D-HHVBars(H,D+1))/D;{Up}
100*(D-LLVBars(L,D+1))/D;{Down}
Another formula can be found here:
http://trader.online.pl/MSZ/e-w-Aroon_Indicators.html
FROM THE HELP FILES:
The Aroon indicator was developed by Tushar Chande. Aroon is
Sanskrit word meaning "dawn's early light" or the change from night
to day. The Aroon indicator allows you to anticipate changes in
security prices from trending to trading range. For more information
on the Aroon indicator see the article written by Tushar Chande in
the September 1995 issue of Technical Analysis of Stocks &
Commodities magazine.
These changes are anticipated by measuring the number of periods that
have passed since the most recent x-period high and x-period low.
Therefore, the Aroon indicator consists of two plots; one measuring
the number of periods since the most recent x-period high (Aroon Up)
and the other measuring the number of periods since the most recent x-
period low (Aroon Down).
The actual plotted value is a "stochastic" like scale (see Stochastic
Oscillator) ranging from 0 to 100. Assuming a default time-period of
14 days, if a security makes a new 14-day high, the Aroon Up = 100;
when the security makes a new 14-day low, the Aroon Down = 100. When
the security has not made a new high for 14 days, the Aroon Up = 0;
when the security has not made a new low for 14 days, the Aroon Down
= 0.
As explained in the interpretation section for the VHF indicator (see
Vertical Horizontal Filter) the age-old problem for many trading
systems is their inability to determine if a trending or trading
range market is at hand. Trend-following indicators such as MACD and
moving averages, tend to be whipsawed as markets enter a non-trending
congestion phase. On the other hand, overbought/oversold oscillators
(which work well during trading range markets) tend to overreact to
price pull-backs during trending markets?thereby closing a position
prematurely. The Aroon indicator attempts to remedy this by helping
you determine when trend-following or overbought/oversold indicators
are likely to succeed.
Interpretation:
There are basically three conditions that you look for when
interpreting the Aroon indicator: extremes at 0 and 100, parallel
movement between Aroon Up and Aroon Down, and crossovers between
Aroon Up and Aroon Down.
Extremes. When the Aroon Up line reaches 100, strength is
indicated. If the Aroon Up remains persistently between 70 and 100,
a new uptrend is indicated. Likewise if the Aroon Down line reaches
100, potential weakness is indicated. If the Aroon Down remains
persistently between 70 and 100, a new downtrend is indicated.
A strong uptrend is indicated when the Aroon Up line persistently
remains between 70 and 100 while the Aroon Down line persistently
remains between 0 and 30. Likewise a strong downtrend is indicated
when the Aroon Down line persistently remains between 70 and 100
while the Aroon Up line persistently remains between 0 and 30.
Parallel Movement. When the Aroon Up and Aroon Down Lines move
parallel with each other (are roughly at the same level), then
consolidation is indicated. Expect further consolidation until a
directional move is indicated by an extreme level or a crossover.
Crossovers. When the Aroon Down line crosses above the Aroon Up
line, potential weakness is indicated. Expect prices to begin
trending lower. When the Aroon Up line crosses above the Aroon Down
line, potential strength is indicated. Expect prices to begin
trending higher.
Hope thiss helps,
Preston
--- In equismetastock@xxxxxxxxxxxxxxx, "nand_rathi" <nand_rathi@xxx>
wrote:
>
> Hello All
>
> Greetings
>
> I need help in how to program the following interpretation (MS 9.1
> EOD, Page 448, Aroon, Interpretation:Extreme) For Ref here is the
> paragraph..
>
> "A strong uptrend is indicated when the Aroon Up line persistently
> remains between 70 and 100 while the Aroon Down line persistently
> remains between 0 and 30. Likewise a strong downtrend is indicated
> when the Aroon Down line persistently remains between 70 and 100
while
> the Aroon Up line persistently remains between 0 and 30."
>
> How many periods (Daily and Weekly) are required generally to define
> the term "Persistently"?
>
> Also, how to go about developing MS code for such a rule? I intend
to
> use it in explorer.
>
> I would appreciate some kind help and/or guidance here.
>
> regards
>
> N
>
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