Aroon oscillator - dynamic zones (levels):
Aroon oscillator — that is using dynamic levels/zones instead of using fixed levels for overbought and oversold conditions.
Author: Mladen Rakic
Even though the default calculating periods of Aroon oscillator are usually set to 25 (as described here :
longer periods of calculations can be very useful when switching the usage of Aroon oscillator from a kind of momentum indicator to a kind of trending indicator. An example of 50 period Aroon oscillator is probably self explanatory - and with the dynamic levels, it becomes even more obvious how it can become a "trending" indicator instead of "search for reversals" default mode of operation :
how to get buy/sell signal, where is that described and other details about oscillator.
it would be helpful if somebody explains that