Last Updated on March 27, 2025 by Arif Chowdhury
Are you tired of guessing where the market is headed?
Do you feel like you’re always a step behind the trend?
Let’s cut to the chase.
The Aroon Oscillator and VWAP (Volume Weighted Average Price) can be your secret weapons in spotting trend continuations.
I’ve been trading Forex since 2015, and these tools have helped me craft a strategy that actually works.
Let’s dive in.
What Is the Aroon Oscillator? 📊
The Aroon Oscillator is a trend indicator that helps traders determine the strength of a trend.
It consists of two lines:
- Aroon Up: Measures the number of periods since the highest price.
- Aroon Down: Measures the number of periods since the lowest price.
When these lines cross, it’s a sign of potential trend change or continuation.
Here’s the kicker:
- An Aroon Oscillator reading above 0 suggests a strong uptrend.
- A reading below 0 indicates a strong downtrend.
What Is VWAP? 📈
VWAP is like the market’s average price based on volume.
It’s crucial for day traders and investors alike.
Why?
Because it helps you understand if you’re buying or selling at a fair price.
- Above VWAP: Indicates a bullish sentiment.
- Below VWAP: Signals bearish sentiment.
Combining Aroon Oscillator and VWAP for Trend Continuations
Now, here’s where it gets interesting.
When you combine these two indicators, you can spot trend continuations like a pro.
Here’s how:
- Identify the Trend:
- Use the Aroon Oscillator to confirm if the market is trending up or down.
- Check VWAP:
- See where the current price is relative to the VWAP.
- Look for Convergence:
- If the price is above VWAP and the Aroon Oscillator is above 0, you’ve got a potential bullish continuation.
- Conversely, if the price is below VWAP and the Aroon Oscillator is below 0, it signals a bearish continuation.
Why This Works
Statistically, about 70% of successful traders rely on trend-following strategies.
By leveraging the Aroon Oscillator and VWAP, you’re aligning yourself with market momentum.
It’s like having a compass in the wild—keeping you on the right track.
My Trading Portfolio and Bots
As I’ve developed my trading strategy, I’ve also created a portfolio of 16 sophisticated trading bots that utilize this Aroon Oscillator + VWAP strategy among others.
These bots are designed to trade the major currency pairs—EUR/USD, GBP/USD, USD/CHF, and USD/JPY.
Each currency pair has its own set of 3-4 bots, ensuring internal diversification to minimize risk.
This multi-layered approach significantly boosts profitability while reducing the chances of simultaneous losses.
And here’s the best part: I’m offering this entire EA portfolio for FREE.
If you’re curious about how these bots can take your trading to the next level, check them out here: my trading bots portfolio.
Practical Tips for Using Aroon Oscillator + VWAP
- Set Your Timeframe: Use H4 charts for long-term trades—this is where my bots excel.
- Monitor Market News: Economic news can affect both the Aroon Oscillator and VWAP, so stay informed.
- Risk Management: Always employ stop-loss orders to protect your capital.
Final Thoughts
Embracing the Aroon Oscillator and VWAP can transform your trading game.
By spotting trend continuations effectively, you can maximize your profits.
Remember, the right tools can make all the difference.
And if you’re looking for reliable brokers to implement these strategies, check out my top picks here: trusted forex brokers.
Get started today, and watch your trading journey take off!