Alon - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources - MetaTrader 5 Resources

The Alon indicator was developed by Tushar S. Chande, CEO of "Tuscarora Capital Management" and author of the books "The New Tech Trader: Boost Your Profits by Inserting the Latest Indicators" and "Beyond Technical Analysis: How to Develop and Implement a Winning Trading System" in 1995 to determine trend direction and strength.

Its main advantage is that it allows traders to determine the beginning of a new trend or the end of an existing trend.

The Aron indicator can be calculated using the following equation:

Bullish indicator = [(N periods - N periods from the highest maximum / N periods] * 100
Bearish indicator = [(N periods - N periods from the lowest minimum) / N periods] * 100

Both equations represent the nearest maximum and minimum values. Higher indicator values ​​show more recent maximum and minimum values, while lower values ​​show more recent maximum and minimum values. Furthermore, the Aron indicator value oscillates between 0 and 100 levels, where higher values ​​indicate a stronger trend and vice versa.

The indicator moves around the 30 and 70 key levels - above 70 indicating a strong trend, while below 30 a weak trend.

Movements between 30 and 70 indicate market instability. For example, if the bullish indicator is above the 70 level and the bearish indicator is below the 30 level, the trend is definitely upward. If the crossover between bullish and bearish indicators occurs between the 30 and 70 levels, it will indicate confirmation. For example, if a bullish indicator crosses a bearish indicator upward, an uptrend is confirmed.

Attachment download

📎 aroon.mq5 (8.94 KB)

Source: MQL5 #388