The Aroon Up Down Trading System comprises a number of trend following indicators and momentum tools for generating highly probable trade signals. It applies a versatile trading strategy that detects pullback, breakouts, and range trading opportunities.
The grey rectangular shapes on the main chart window represent the AIMS Box. It forms based on the previous day’s highs and lows. This box helps you to anticipate the price breakout levels.
The BBStops V4 determines the trend conditions and assists in spotting the price reversal areas by using its dynamic trendline. Besides, the system includes SDX Tz Pivots, Aroon Up & Down, ADX, S-Roc Histo, and Matrix ACRA.
Buy Signal Generation with Aroon Up Down Trading System
In the above chart, the AIMS box of the system has spotted a potential buy opportunity following a bullish price breakout. When the price broke out of the box, the BBStops turned blue and transformed itself as support to confirm a bullish market trend.
Also, the Aroon Up & Down delivered a bullish crossover signal, and the ADX value remains near 40 suggest the current uptrend is valid. The S-Roc Histo and Matrix ACRA bars turn blue at the same time indicates a buy confirmation.
Sell Signal Generation with Aroon Up Down Trading System
The price breaks below the AIMS Box and the BBStops support indicate a solid bearish breakout. For further confirmation, the Aroon Up & Down needs to plot a bearish crossover, and the ADX drop to near 20. Also, the S-Roc Histo and Matrix ACRA bars turn red, which means an ideal time to go short.
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Conclusion
The Aroon Up Down Trading System offers an all-around strategy that provides technical support for both day and intraday speculators. Apart from breakout, trend, and momentum tools, this system also includes GG Trend Bar that shows the trend status in multi-timeframes. If you prefer a flexible trading approach, the Aroon Up Down Trading System can be a great one to start with.
