AROON indicator: profit on M1 timeframe
- VFX Blog
- Strategies
Hello trader! We continue to trade using forex scalping strategy for quick profit. To do this, let's look at the AROON indicator, which well determines the moments of a trend reversal in combination with the Moving Average.
Trading platform
Select a broker in the vfxAlert program, register by E-mail/Password:
Select a demo account to test the strategy. We always do this before placing it on a real account. The strategy can also be used on M5-M15 timeframes. Then set the expiration of 10 candles.
Trading strategy
The Forex and crypto scalping strategy is simple, accessible to newbie traders - basic knowledge about the moving average and trend dynamics, the operation of overbought/oversold oscillators is enough.
Strategy characteristics:
Type: Trend
Timeframe: Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal increases.
Trading asset: Any currency Forex pairs and cryptocurrecny. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Trading time: All trading sessions.
Recommended expiration: 10 - 15 min.
Scalping forex strategy used indicators:
- Dashboard. The vfxAlert service tool that displays information in a convenient way on indicators of trend dynamics, overbought and oversold, Pivot price levels.To quickly determine the current market situation, we use the "thermal" scale. The “warmer” the color is in the Buy and Sell zones, the stronger the CALL or PUT option signal. Read more on the blog.
- Exponential moving averages. Trend indicators by which we determine the opening point of the currency scalping. The strategy is not intended for trading during flat periods. We trade only if the range is between at least 15-25 points!
- AROON. An oscillator with a reversal of lines when a new price high or low appears. The point of intersection will mean a temporary equilibrium in the market after which the trend is likely to reverse. Settings do not change. Works well on any best scalping strategy and timeframe. The indicator is not available in all binary trading terminals!
After installing the indicators on charts:
This combination of indicators and vfxAlert service can be used as a scalping cryptocurrency strategy on Bitcoin, Ethereum and LiteCoin.
On scalping crypto AltCoin, the market liquidity is lower, which means more speculative movements. Test the strategy on a demo account, maybe the best results will be on a timeframe of 5 minutes or more.
Trading signals:
- UP (CALL). The price goes above the Moving Average or breaks it from the bottom up. At AROON intersection: UP line above Down line. Dashboard is located in the BUY zone.
- DOWN (PUT). Opposite conditions: The price is below the Moving Average or breaks down. Down line on AROON above UP line. Dashboard in the SELL zone.
You can open options on the decline of the upper Up or Down AROON lines. But, the most reliable best Forex scalping strategy signals will be immediately after the crossing of the lines and growth to the level of 100 of the indicator!
Open a deal on the next candle after scalping forex signals. The expiration time of the options should be at least 10-15 minutes, even if a minute is selected as the working timeframe, as in our video.
- Exponentials Moving Averages is good at defining the current trend, but should only be used with oscillators. The reliability of signals can be increased by going to a longer timeframe. But on the minute crypto scalping strategy gives 70-80% of the right signals.
- The longer the sideways movement in the market, the higher the probability of a strong trend after its completion. In such cases it is possible to open trades at the first signs of a Moving Average reversal and strong signals from vfxAlert and indicators for scalping Forex;
- There are examples of using AROON as the only tool. The results are different: there are both positive and negative statistics. Beginners should always use additional confirmation from other tools or signal services such as vfxAlert.