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.
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.
If this article seems useful to your then please click the like button below. You can also share your valuable feedback or ask questions in the below comment section. Also, subscribe to our newsletter for trading-related updates.