Aroon Up Down

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Aroon Up Down
Last modified: May 5, 2021
Estimated reading time: 1 min

The Aroon Up/Down technical indicator identifies when the price is in a trend or trading sideways.

It was developed by Tushar Chande, who used the word “aroon” due to its meaning in Sanskrit: “dawn’s early light” or “the change from night to morning”.

The indicator uses two lines: Aroon Up and Aroon Down.

  • Aroon Down is a measure of how close the current bar is to the most recent lowest Low bar found in the last N bars.
  • Aroon Up is a measure of how close the current bar is to the most recent highest High bar found in the last N bars.

The Aroon Up/Down indicator ranges from 0 to 100.

The default period is 14 days.

aroon-up-and-down

How to Use Aroon Up/Down

  • If the price makes a new 14-day high, the Aroon Up = 100.
  • If the price makes a new 14-day low, the Aroon Down = 100.
  • If the price does not make a new high in 14 days, the Aroon Up = 0
  • If the price does not make a new low for 14 days, the Aroon Down = 0.

Similar to the ADZ indicator, the Aroon indicator is used to determine if the market is trending or not.

A related technical indicator, the Aroon Oscillator can be defined as the difference between the Aroon Up and Aroon Down values.


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