Aroon Indicator
Aroon Up / Down / Oscillator — equity trend.
What is the Aroon Indicator?
The Aroon Indicator measures trend strength by tracking how long it has been since the highest high and lowest low within a lookback period (25 days).
Components
- Aroon Up: Days since 25-day high (0-100)
- Aroon Down: Days since 25-day low (0-100)
- Oscillator: Up minus Down (-100 to +100)
Interpretation
- Strong uptrend: Up > 70 & Down < 30
- Strong downtrend: Down > 70 & Up < 30
- Consolidation: Both around 50
Trading Signals
- Up crosses above Down: Bullish
- Down crosses above Up: Bearish
- High readings (>70) confirm trend
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