GlossaryIntermediate
Aroon and Aroon Oscillator
Indicators that measure how recently price made a new high or low within a lookback period, used to gauge whether a trend is strengthening.
Aroon, developed by Tushar Chande, measures how many periods have passed since the most recent high (Aroon Up) and the most recent low (Aroon Down) within a set lookback window, each scaled from 0 to 100 — a reading near 100 means that extreme occurred very recently.
The Aroon Oscillator is simply Aroon Up minus Aroon Down, combining both into a single line that swings between -100 and 100, commonly used to gauge whether an uptrend or downtrend currently has the upper hand. See Kaavon's dedicated Aroon article for the full calculation.
Examples
- An Aroon Up reading near 100 means the current lookback window's highest price occurred very recently, consistent with a strengthening uptrend.
- The Aroon Oscillator crossing above zero means Aroon Up currently exceeds Aroon Down, commonly read as favoring the upside.