The Aroon indicators are a momentum oscillator developed in 1995 by Tushar Chande. Designed to indicate whether an asset is trending, Chande named his oscillator “Aroon,” which means “Dawn’s Early Light” in Sanskrit. He believed this name aptly described the oscillator's function, which focuses on time relative to price and is commonly used to identify emerging trends and anticipate reversals. This makes the Aroon indicators an effective early warning system for price action.
Aroon Crossovers
Interpreting the Aroon indicators involves three key levels on the scale: 0, 50, and 100. A basic interpretation suggests that the market is bullish when Aroon-Up is above 50 and Aroon-Down is below 50, indicating that new daily highs are more likely than new daily lows. Conversely, with a downtrend, Aroon-Down is above 50 while Aroon-Up is below 50, suggesting that new daily lows are more likely than new daily highs.
- An Aroon-Up indicator that measures how many days it’s been since a 25-day high was recorded.
- An Aroon-Down indicator that measures how many days it’s been since a 25-day low was recorded.
We use the Aroon with the Relative Strength Index (RSI) indicator for a better trading signal.
Combined Aroon and RSI Strategy
Using Aroon and RSI together can enhance the reliability of trading signals by using the Aroon to identify the overall trend and the RSI to confirm if the stock is in an overbought or oversold condition within that trend.
The strategy contains the full source code. It is for educational purposes to help traders with various levels of programming knowledge learn the following skills using Microsoft C# and the cTrader API. This cBot was created by the ClickAlgo Strategy Building Tool in a few minutes with no coding.
Risk Management
In addition to the trade signals to open trades automatically, the cBot also uses some basic risk management in the form of the variable position size based on the percentage of the account balance, this unique feature will automatically increase the position (lot) size as your account balance grows for maximum profits. Also, included is a standard take profit and stop loss option.
You can add risk management features and other trade rules by contacting our development team.
Built Using the Algo Strategy Builder
This cBot was built with no coding required using the cTrader Algorithmic Strategy Builder for the cTrader Platform.
How To View The Source Code
To view the source code for this cBot, you will first need to make sure you have downloaded and installed cTrader Desktop, you can also scroll to the bottom of this page for instructions on how to install the cBot. Once installed you will have the cTrader application open, you need to navigate to the Automate application and click on the name of the cBot, the source should show in the right-hand window.
If you need more help watch a video tutorial on how to use cTrader Automate.
Learn Microsoft C# for Algo Trading
If you are new to coding your cTrader cBot for automated trading the following Microsoft C# course will help you modify the starter kit cBot in this download to add new features for your personal trading strategy.
Algorithmic Trading Facts
Many traders venture into algorithmic trading with the misconception that they have discovered a foolproof strategy that guarantees effortless wealth. However, this notion is far from reality. It is crucial to read this article, as it can save you valuable time and money.
How To Install & Remove
First, make sure you have the cTrader trading platform installed.
Any Questions?
If you have any questions, please first search our coding help forum for the answer, if you cannot find it, post a new question.
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All cBot Code Examples
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