Extra indicators
Aroon
Two lines showing how recently the highest high and the lowest low of the last 25 candles happened.
The idea in plain words
In a strong uptrend new highs come often, so the last high is recent. Aroon Up is 100 when the high was today and falls as it gets older; Aroon Down does the same for lows.
How it is calculated
Count how many candles ago the highest high (or lowest low) occurred within the period and convert it to a percentage.
Aroon Up = 100 × (N − candles since highest high) ÷ N
Aroon Down = 100 × (N − candles since lowest low) ÷ N (N = 25)How to use it
- Aroon Up above 70 and Down below 30: strong uptrend; the reverse: downtrend.
- Lines crossing: a possible trend change. Both low: consolidation.
Drawing conclusions
- Aroon measures time since extremes, not price distance, so it spots trend starts early.
Example
Aroon Up jumps to 100 and stays above 80 while Aroon Down sinks below 20: a fresh uptrend.
Prices in examples are illustrative.
Watch out for
- Ranges produce frequent crossovers.
A little history
Tushar Chande introduced Aroon in 1995; the name means "dawn's early light" in Sanskrit.
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.