Aroon
Trend-detection indicator showing how recently the n-period high and low were set; near-100 Aroon Up signals a strong uptrend.
Formula
Aroon Up = ((n − Periods Since n-Period High) / n) × 100; Aroon Down = ((n − Periods Since n-Period Low) / n) × 100
Aroon measures time elapsed since the highest high (Aroon Up) and lowest low (Aroon Down) within a lookback window (default 25). If the highest high was just set, Aroon Up = 100; if it was set 25 bars ago, Aroon Up = 0.
When Aroon Up is near 100 and Aroon Down is near 0, a strong uptrend is in place. Crossovers of the two lines signal potential trend changes. The Aroon Oscillator (Up − Down) condenses this into a single line between −100 and +100; values above zero favour longs.
Related Terms
Average Directional Index (ADX)
Non-directional trend-strength gauge (0–100); readings above 25 indicate a trending market, below 20 suggest a range.
IntermediateDirectional Movement Index (DMI)
System of +DI and −DI lines measuring upward and downward price movement; the gap between them, normalised as ADX, quantifies trend strength.
AdvancedDonchian Channel
Breakout envelope plotting the highest high and lowest low over the past n periods (typically 20); the midline is their average.
IntermediateVortex Indicator
Trend indicator measuring upward and downward vortex movement; VI+ crossing above VI− signals a new uptrend, below signals a downtrend.
Intermediate