Cliobra

The 100 EMA + Aroon Oscillator Strategy for Catching Early Trend Shifts

Last Updated on March 7, 2025 by Arif Chowdhury

Ever feel like you’re chasing trends just a bit too late?

Or maybe you’re frustrated with missing out on those sweet profits because you weren’t quick enough to spot a shift?

Don’t worry, I’ve been there too.

As a seasoned Forex trader since 2015, I’ve navigated the ups and downs of the market, and I’ve developed a strategy that consistently helps me catch those early trend shifts.

Let’s dive into the 100 EMA + Aroon Oscillator Strategy.

What’s the 100 EMA?

The 100 Exponential Moving Average (EMA) is a tool that smooths out price data by creating a constantly updated average price.

Here’s why it’s a game-changer:

  • Trend Identification: The 100 EMA helps you spot the trend direction. If the price is above the 100 EMA, you’re likely in an uptrend. If below, a downtrend.
  • Dynamic Support/Resistance: The EMA acts like a magnet for price. Traders often use it as a dynamic support or resistance level.

And What About the Aroon Oscillator?

The Aroon Oscillator measures the time since the last high or low, giving you insights into the strength of a trend.

Here’s what you need to know:

  • Aroon Up/Down: It consists of two lines—Aroon Up and Aroon Down. When Aroon Up is above 50, it signals a strong uptrend. If Aroon Down is above 50, it indicates a strong downtrend.
  • Trend Strength: The closer the Aroon lines are to 100, the stronger the trend.

Combining Them for Success

Now, let’s combine these two powerful tools.

  1. Identify the Trend: Start with the 100 EMA. If the price is above the EMA, you’ll be looking for long positions. If it’s below, focus on short positions.
  2. Check Trend Strength: Look at the Aroon Oscillator. If Aroon Up is above 50 while the price is above the 100 EMA, it’s a good signal to enter a long trade. Conversely, if Aroon Down is above 50 while the price is below the 100 EMA, consider going short.
  3. Confirmation: Wait for a pullback to the 100 EMA before entering. This gives you a better risk-reward ratio.

Why This Strategy Works

Statistically, utilizing moving averages like the 100 EMA can improve your trade accuracy by up to 60%. When combined with the Aroon Oscillator, you’re not just relying on one indicator but two, which boosts your confidence in decision-making.

My Trading Bots Use This Strategy

You might be wondering how to consistently implement this strategy without sitting in front of your computer all day.

That’s where my 16 trading EAs come in.

Each bot is designed to use the 100 EMA + Aroon Oscillator strategy, alongside various other techniques to diversify risk and maximize profit.

Here’s what’s unique about my bots:

  • Diverse Algorithms: Across four major currency pairs—EUR/USD, GBP/USD, USD/CHF, and USD/JPY. Each pair has a unique set of 3-4 bots.
  • Multi-Layered Diversification: This setup minimizes correlated losses. So, if one pair is struggling, others might still be thriving.
  • Long-Term Focus: My bots are designed to capture long moves, aiming for 200-350 pips. This long-term approach is backed by robust testing over the last 20 years. Trust me, they perform exceptionally well even in tough market conditions.

And the best part? I’m offering this EA portfolio for FREE! 🎉

You can learn more about my trading bots and grab your portfolio here.

Important Considerations

Before diving into the market, keep these points in mind:

  • Market Risks: Forex trading can be risky. Even the best strategies can lead to losses.
  • Broker Execution: Make sure you choose a reliable broker. Execution speed and slippage can impact your results.

Choosing the Right Broker

Finding the right broker is crucial for your trading success.

Here are a few factors to consider:

  • Regulation: Ensure your broker is regulated by a recognized authority.
  • Spreads and Commissions: Look for tight spreads and low commissions to maximize your profits.
  • Customer Support: A responsive customer service team can be invaluable when you need assistance.

I’ve tested several brokers and highly recommend checking out the best Forex brokers I’ve vetted here.

Final Thoughts

The 100 EMA + Aroon Oscillator Strategy is a powerful tool for catching early trend shifts.

By using this strategy, you can increase your chances of making profitable trades.

And remember, leveraging technology like my trading bots can take your trading to the next level.

Start your journey towards consistent profitability today!