Quotex Strategy: Maroon

The Aroon indicator can be found on the trading platforms of many brokerage companies today, including the Quotex broker, although the indicator itself is relatively new and has not yet gained the same popularity as other common binary options indicators. The Aroon strategy provides information about the direction of the trend, flat market conditions, and points where the asset price is likely to reverse.

You can trade binary options using Aroon on its own, but to generate more effective signals it is recommended to use it together with the Moving Average (MA) indicator. This way, you can trade without using the MetaTrader 4 terminal.

How the Aroon Indicator Works

This indicator is still unfamiliar to many traders, who are more accustomed to standard oscillators such as the Stochastic Oscillator or RSI. However, on closer inspection, you will find that Aroon is well suited for identifying market movement and gauging buying and selling pressure, which can be read from the indicator's high and low values. Aroon was created by technical analyst and author Tushar Chande, who is known for numerous contributions to futures and stock market analysis.

Aroon is an oscillator made up of two lines that always move in opposite directions within a range from "0" to "100". The calculation is based on counting bars after the price reaches a new high or low. Once a bar registers a new minimum or maximum, the indicator reaches "0" or "100":

Price movements in different markets can be either strong or weak, regardless of the timeframe. Due to rapid price changes, the indicator may not reach its extremes (the "0" or "100" values), forming troughs and peaks at intermediate levels instead.

Installing the Indicators on the Quotex Platform

To apply the Aroon strategy on the Quotex platform, you need to add the required indicators to the chart from the indicator panel:

There is no need to change the Aroon settings. It is recommended to leave the period at the default value of "25":

For the Moving Average indicator, set the period to "30" and change the moving average type to EMA:

Trading Rules for the Aroon Strategy

Trading with this strategy is straightforward — you simply need to watch for signals from both indicators. Let's start with the signals from Aroon.

Since Aroon is an oscillator made up of two directional lines, you need to track their crossovers: if the green line crosses the red one from bottom to top, buy a Call option, and if it crosses from top to bottom, buy a Put option:

Once you have a signal from Aroon, check the EMA: if the asset price is below the EMA line, buy a Put; if it is above the line, buy a Call.

It is also worth keeping in mind that the Aroon strategy produces its best results in a trending market, as a flat market generates a large number of false signals. For this reason, it is important to understand how to identify a trend and trade with it before using this strategy on Quotex.

Buying Options on Quotex

Based on everything discussed above, the trading algorithm is as follows:

1. The Aroon indicator lines cross from bottom to top or from top to bottom;
2. The price is above or below the EMA line;
3. You can use the M1 and M5 timeframes, and the expiration time is 5 candles.

Here is an example of buying a Call option on Quotex:

The price was in an uptrend and above the EMA line. The Aroon indicator lines then crossed, creating an opportunity to buy a Call option with an expiration of 5 candles (5 minutes).

Here is an example of buying a Put option on Quotex:

In this case, the Aroon lines crossed first, after which the price closed below the EMA. The Put option is bought with the same expiration time of 5 candles.

It is worth remembering that signals from this strategy can also result in losses. To reduce risk, we recommend using the Quotex promo code to cancel loss trade, which refunds the full amount of the loss back to your account.

Summary

The Aroon strategy has several advantages over similar strategies:

• It is simple and easy to use;
• It is also suitable for novice traders;
• It can be applied directly on the Quotex platform, since all the necessary indicators are already built in.

The indicators used in the Aroon strategy are also very easy to read, and you can adjust their sensitivity to suit your own preferences by changing their values.

At the same time, it is important to remember the basic rules and to test the strategy thoroughly on a demo account, working through every possible scenario and mistake to reduce the risk of losses before moving on to live trading.

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See Also:

• How to Open an Account with Quotex
• How to Verify your Quotex Account
• Quotex Broker Affiliate Program