The Aroon Oscillator is a technical indicator used in Forex trading to identify trend strength and potential reversals. It is derived from the Aroon Up and Aroon Down lines, which measure the time since the highest and lowest prices over a given period (typically 14 periods).
Steps to Draw the Aroon Oscillator:
1. Select a Charting Platform – Use platforms like MetaTrader 4/5, TradingView, or ThinkorSwim, which support the Aroon indicator.

2. Apply the Aroon Indicator – Locate the Aroon indicator in the platform’s indicator list. Input the desired period (default is 14).

3. Understand the Components – The Aroon Up (green/blue) measures bullish strength, while the Aroon Down (red) measures bearish strength.

4. Calculate the Oscillator – The Aroon Oscillator is simply Aroon Up – Aroon Down, plotted as a histogram around a zero line.

5. Interpret the Signals –

Above Zero: Bullish momentum.

Below Zero: Bearish momentum.

Crossing Zero: Potential trend change.

The oscillator helps traders spot emerging trends and confirm breakouts. Combining it with other indicators like moving averages improves accuracy.