How to detect false and late signals using the Aroon indicator
hive-167922·@lupafilotaxia·
0.000 HBDHow to detect false and late signals using the Aroon indicator
<p></p> <center><img src="https://i.postimg.cc/cLDPZxgT/Como-detectar-se-ales-falsas-y-tard-as-utilizando-el-indicador-Aroon-12.png"/></center> <p></p> <div class="text-justify">Like most technical indicators, the Aroon tool can also project false signals, hence the need to combine it with other indicators such as the <strong>Williams% R Indicator,</strong> as with this other indicator you can confirm momentum zones and determine which segment of the market is in control.</div> <p></p> <h3> False signals </h3> <p></p> <div class="text-justify">Notice in the following chart example in the price action of the <strong>TRX/USDT pair,</strong> how the Aroon-Down indicator crosses the Aroon-Up line generating a false bearish signal, and conversely the Williams% R Indicator is above -20 approaching 0 indicating probable uptrend strength.</div> <p></p> <center><img src="https://i.postimg.cc/MKpDwy72/2-Aroon-indicator-12.png"/></center> <table> <tr> <td></td> <td><center><a href="https://www.binance.com/es/" rel="noopener" title="This link will take you away from steemit.com"> Screenshot of the Binance portal </a></center></div></td> </tr> </table> <p></p> <h3> Late signals </h3> <p></p> <div class="text-justify"> The Aroon indicator can also reveal signals after a trend has already been set by price action, a response of the Aroon indicator considered as a late signal.</div> <p></p> <div class="text-justify">Notice in the following chart example in the price action of the <strong>VET/USDT</strong> pair how the Aroon-Down indicator crosses the Aroon-Up line generating late bearish signal, and on the contrary the Williams% R Indicator has been making range above the 0 line, which had already revealed a potential change from bullish to bearish.</div> <p></p> <center><img src="https://i.postimg.cc/J4YQzGxy/3-Aroon-indicator-12.png"/></center> <table> <tr> <td></td> <td><center><a href="https://www.binance.com/es/" rel="noopener" title="This link will take you away from steemit.com"> Screenshot of the Binance portal </a></center></div></td> </tr> </table> <p></p> <div class="text-justify"> That's all for now, in the next post I will run demonstrations with real buy and sell trades using the Aroon indicator with the help of the other indicators.</div> <p></p> <center><img src="https://i.postimg.cc/rF5YhtDV/Banner-Fuente-consultada-I.png"/></center> <p></p> <div class="text-justify"><h4>SOURCES CONSULTED</h4></div> <p></p> <div class="text-justify"><strong> AvaTrade </strong> Aroon Indicator Trading Strategies. <a href="https://www.avatrade.com/education/technical-analysis-indicators-strategies/aroon-indicator-strategies" rel="noopener" title="This link will take you away from steemit.com"> Link</a></div> <p></p> <center><img src="https://i.postimg.cc/rF5YhtDV/Banner-Fuente-consultada-I.png"/></center> <p></p> <div class="text-justify"><h3>OBSERVATION:</h3></div> <p></p> <div class="text-justify">The cover image was designed by the author: @lupafilotaxia, incorporating image: <a href="https://es.tradingview.com/" rel="noopener" title="This link will take you away from steemit.com"> TradingView </a></div> <p></p> <center><img src="https://i.postimg.cc/0Q6V76gq/Banner-Fuente-consultada-II.png"/></center> <p></p> <center><img src="https://i.postimg.cc/t4gH0T3K/Banner-Scientific-Content-Blogger.png"/></center> <p></p>
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