Moving Averages and Aroon Oscillator

Anyone have any experience using Aroon or Aroon Oscillator to avoid whipsaws in short-term moving average system? It seems to work for me, but it may be luck.

Hey KillerTrader

Hope you dont kill me if I ask these questions :smiley:

What is the Aroon and how do you use it with MAs?

Could you also post a chart setup as an example?

“Developed by Tushar Chande, the Aroon Oscillator is based upon his Aroon Indicator. Much like the Aroon Indicator, the Aroon Oscillator measures the strength of a trend.
The Aroon Oscillator is constructed by subtracting Aroon Down from Aroon Up. Since Aroon Up and Aroon Down oscillate between 0 and +100, the Aroon Oscillator oscillates between -100 and +100 with zero as the center crossover line. The Aroon Oscillator signals an uptrend if it is moving towards its upper limit. It signals a downtrend when it is moving towards the lower limit. The closer the Aroon Oscillator value is to either extreme the stronger the trend.”

I’ve got a pretty simple moving average system, and I won’t enter a trade unless the Aroon Oscillator is above 50 going long or below 50 going short. It seems to avoid some of the whipsaws. Sorry, can’t post charts (yet).

Hi Killertrader

Can you post an example?

No, sorry, can’t.

I’m kind of the one asking the questions on this post. I’m by no means an expert. It seems, however, that this oscillator, which allegedly measures the strength of a trend, is helping me stay out of whipsaws by using it with an overbought/oversold oscillator and a very unsophisticated EMA system.

I was hoping somebody could validate it’s use and give me some tips, or otherwise I’m not so sure it’s not just dumb luck I’m having with it.