Question 1

What is Aroon?

Accepted Answer

The Aroon indicator, developed by Tushar Chande, measures how much time has passed since the highest high and lowest low over a given period. It consists of two lines — Aroon Up and Aroon Down — each oscillating between 0 and 100. Aroon helps identify whether an asset is trending and how strong the trend is.

Question 2

How it works

Accepted Answer

``` Aroon Up = ((N - bars since highest high in N periods) / N) × 100 Aroon Down = ((N - bars since lowest low in N periods) / N) × 100 ``` - When the highest high was just 1 bar ago, Aroon Up = 100. - When the highest high was N bars ago, Aroon Up = 0.

Question 3

Key features

Accepted Answer

- **Time-based** — measures when the last extreme occurred, not the magnitude of price moves. - **Two lines** — Aroon Up and Aroon Down provide a complete picture of trend state. - **Range 0-100** — easy to interpret at a glance.

Question 4

Strong uptrend

Accepted Answer

- Aroon Up above 70 and Aroon Down below 30.

Question 5

Strong downtrend

Accepted Answer

- Aroon Down above 70 and Aroon Up below 30.

Question 6

Consolidation

Accepted Answer

- Both lines below 50 — no clear trend.

Question 7

Crossovers

Accepted Answer

- Aroon Up crosses above Aroon Down — bullish. - Aroon Down crosses above Aroon Up — bearish.

Question 8

Parameters

Accepted Answer

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 25 | Lookback window for highest high / lowest low |

Question 9

Sub-components

Accepted Answer

| Component | Description | |-----------|-------------| | `AROON_UP(25)` | Aroon Up line (0-100) | | `AROON_DOWN(25)` | Aroon Down line (0-100) |

Question 10

Example conditions

Accepted Answer

| Condition | Meaning | |-----------|---------| | `AROON_UP(25) > 70` | Strong uptrend — recent high is very recent | | `AROON_DOWN(25) > 70` | Strong downtrend — recent low is very recent | | `AROON_UP(25) cross_over AROON_DOWN(25)` | Bullish crossover | | `AROON_UP(25) > 50` | Moderate uptrend |

Question 11

Tips

Accepted Answer

- Aroon is excellent at catching the start of new trends — it signals as soon as a new high/low appears. - Combine with ADX: Aroon identifies trend direction, ADX confirms trend strength. - Period 25 works well for daily charts; reduce to 14 for intraday. - When both Aroon lines are near 50, the market is transitioning — wait for a clear signal.