Arun indicator.
Price movement occurs only due to the actions of two categories of traders in the market, who form supply and demand.
Buyers actively open purchase transactions, thereby creating demand, and sellers place warrants for sale, increasing the supply of currency in the forex market.
It is the predominance of one category or another in the market that forms the main trend in the direction of which it is customary to open transactions.
That is why in the process of market analysis it is very important to determine the dominant crowd, and it is very important to consider the category of sellers and buyers both simultaneously and separately.
This can be achieved only in two ways, namely by reading the Depth of Market tape, which is impossible in the Forex market, or by using technical indicators.
One such indicator that tracks both buyers and sellers in the market is Arun.
The indicator is a universal tool, and with its help you can not only analyze the crowd and determine entry points, but also determine market flat.
The indicator can be used on any currency pairs and time frames, and so that you do not miss a signal, it is equipped with a sound alert and an email alert.
Installing the Arun indicator
Despite the fact that the indicator was developed more than 20 years ago and is widely popular, it is not built into the MT4 trading platform by default both in the stock market and forex.Therefore, in order to use it, download the indicator file from the link and then install it in the MT4 trading platform.
The installation procedure follows the standard scheme, namely, after downloading the indicator, you need to dump its file into the appropriate folder in the terminal data directory.
To open the data directory, launch your platform and in the upper left corner, launch the “File” menu. You will see a list of options, among which we find “Open data directory” and launch it.
Having opened the directory, you will see a list of system folders, among which find the folder called Indicators and drop the Arun indicator file into it.
In order for the terminal to see the installed file, it is enough to restart it or update it in the navigator panel.
After updating the terminal, Arun will appear in the list of custom indicators, and in order to start using it, drag the name of the indicator to the chart of your chosen currency pair.
Practical application of the tool.
As you may have noticed, the Arun indicator consists of two lines of different colors. The first blue line visually shows us the activity of buyers in the market, while the red line shows the behavior of sellers.
When using the Arun indicator, it is very important to analyze the location of the lines. So, if the blue line is at the top, buyers dominate the market, and if the blue line is at the top, sellers dominate.
Finding two lines on top at the same time tells us that there is an active struggle in the market, and the dominant party has not been determined. Shifting lines towards the center indicates a fall volatility and the possible appearance of a flat on the market.
From a practical point of view, only one signal is used from the Arun indicator - the intersection of the indicator lines, which indicates the change of one dominant group over another.
Thus, a buy position is opened if the red line crosses the blue line from bottom to top. A sell position should be opened if the red line crosses the blue line from bottom to top. Example:
Arun indicator settings
There are only three variables in the Arun indicator settings, and only one actually affects the operation of the indicator on Forex.
So in the AroonPeriod line you can change the indicator period. The Sound Alert variable allows you to enable a sound notification when a signal appears in the terminal, and the MailAlert variable allows you to enable a mail notification about a new signal.
In conclusion, it is worth noting that Arun is more effective when used on older time frames.
Also, we should not forget the fact that any indicator alone will give false signals, so when using it, it would not hurt to use additional filters.
Download the Arun indicator.