Trends/Trend strength and direction

Aroon oscillator

Aroon Up minus Aroon Down, from −100 to +100.

Trend strength and directionBest on 6M, 1YAlso called Aroon osc

Illustration of the Aroon oscillator shape. It is a sketch, not real price data.

What it shows

The Aroon oscillator subtracts Aroon Down from Aroon Up. A positive value means the highest high is more recent than the lowest low. A negative value means the opposite.

It condenses the two Aroon lines into one.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Compute Aroon Up and Aroon Down (25).
Oscillator = Up − Down.
Plot with a zero line.
Mark ±50.

Starting values: Length 25. These are proposed and will be tuned on real price data before launch.

How to read it

The panel shows the difference.
Above zero: highs are more recent.
Below zero: lows are more recent.

Status labels you may see

Label	What it means
Positive	Oscillator above 0.
Negative	Oscillator below 0.
Near zero	Between −10 and 10.

What cancels it

Nothing cancels it.

What traders check next

Zero crosses.
Extremes at ±100.
Price trend.

Limits

Same limits as Aroon.
Noisy.
Based on extreme bars.

Try it in forecastviz

Open any ticker and choose Trend strength and direction → Aroon oscillator in the left menu.
Switch between 6M, 1Y to see how the picture changes.
Compare with Aroon and Average directional index on the same chart.

Open on a ticker

Questions

Why use it?

One line instead of two.

Is zero important?

It is where highs and lows are equally recent.