Indicator Arun

Introduction

Designed Tyusha Cheyndom in 1995, Arun indicator is an indicator that can be used to determine, whether the market trend is a tool or not and how strong the trend. "Arun" in Sanskrit means "Early Light of Dawn" and Cheynd chose this name for this indicator, since it is intended to show the beginning of a new trend.

Arun indicator consists of two lines, Arun (top) and Arun (down). To calculate the indicator Arun only required parameter, which is the number of time periods. Arun (top) displays the amount of time (based on per cent), which took place between the beginning of the interim period and a point which was the highest price during this period of time. If market-based instruments set a new minimum for the given time period, the value of Arun (up) will be equal to zero. On the other hand, if the market instruments rose higher than it was during the time period, the value of the indicator will be equal to 100. For each subsequent period that passes without another new high, Arun (up) moves down on the amount equal to (1 / number of periods) x 100.

Technically, the formula for Arun (up) will be as follows:

[[(number of periods) - (number of periods since the highest peak during this time)] / (number of periods)] x 100

For example, consider the construction of the line 10-periodnogo Arun (up) in the afternoon schedule. If the maximum price during the past ten days has been shown 6 days ago (4 days, starting with the period of time), the value of Arun (up) for today will be equal to ((10-6) / 10) x 100 = 40. If the minimum price for the same period was marked yesterday (ie on 9 th day), the value of Arun (down) for today, will be equal to 90.

Arun (down) is calculated in the same way in the opposite direction, by finding new minima, instead of new highs. When the new minimum is set, Arun (downstream) will be equal to 100. If the market sets a new best tool for this time period, the value of Arun (downstream) will be equal to zero. And so on ...

Formula for Arun (down):

[[(number of periods) - (number of periods with a minimum wage during this time)] / (number of periods)] x 100

Oscillator Arun

A separate indicator called Arun Oscillator can be constructed by subtracting the value of Arun (down) from the value of Arun (top). As Arun (top) and Arun (down) varies between 0 and 100, the Arun Oscillator oscillates between -100 and +100 with zero as the center line.

Basic principles of interpretation

Cheynd states that when Arun (top) and Arun (down) to move down close enough to each other, it signals that the full swing phase of consolidation, and no clear trend is not strong. When Arun (top) falls below 50, this indicates that the current trend has lost its upward momentum. Similarly, when Arun (below) falls below 50, down trend has lost its momentum. Values above 70 indicate a strong trend in the same direction, since the meaning of Arun (up or down) is high enough.

Arun Oscillator signals an upward trend when it is above zero, and the descending trend when it falls below zero. The farther from the oscillator is the zero line, the stronger the trend is developing market-based instruments.

Indicator Arun somewhat resembles indicator DMI Vayldera (and Oscillator Arun similar lines ADX Vayldera), however, the indicator Arun built in a totally different way. Differences between these two indicators can be very instructive.

The use of graphics programs

Many software packages allow users to build Oscillator indicator Arun and Arun, using a selected number of periods. Typically, the default value is 25, but it can be changed through appropriate option. The increase in the number of periods ago received signals a significant, but this may lead to delay.