8/11/2023 0 Comments Er stock lingoThe crowd psychology is revealed at a glance by the color of the body. Its color, black or white, is strictly dependent on the relation between the Open and the Close price. The area between the Open and Close price is known as the body or real body of the candlestick. The candlesticks display the Open, High, Low, and Close price in a pictorial way. He believed that candlesticks reflect the market psychology and the investors’ emotions, which are essential in forecasting the next price move. "A price charting technique attributed to Honma Munehisa, a rice market trader in 17th century Japan. On the other hand, when the Aroon Down crosses below the Aroon Up, then a downtrend is expected. When the Aroon Up crosses above the Aroon Down then an uptrend is likely to follow. Anticipation of trending markets is signaled by the crossover of the two lines. When the two lines move parallel to each other, then a consolidation may follow.Ī breakout of the consolidation is expected when the two lines cross over or move to an extreme level like 0 and 100. Similarly, a reading between 0 and 30 for the Aroon Down, indicates a downtrend. The Aroon indicator is interpreted as follows: when Aroon Up is between 70 and 100 an uptrend is signaled. N - (periods since lowest low in "n+1 periods) * 100 /n. N - (periods since highest high in "n+1" periods) * 100 / n.Similarly, Aroon Down is calculated as: It consists of two lines: the Aroon Up and the Aroon Down. A technical analysis indicator used to determine a change in the direction of a financial instrument and measure the strength of the trend during a trending market.
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