Trends/Trend strength and direction

Aroon

Measures how many bars ago the highest high and lowest low of the last 25 bars happened.

Trend strength and directionBest on 6M, 1YAlso called Aroon up/down
Aroon diagramIllustration of the Aroon shape. It is a sketch, not real price data.Aroon up / down
Illustration of the Aroon shape. It is a sketch, not real price data.

What it shows

Tushar Chande's Aroon has two lines. Aroon Up = (25 − bars since the 25-bar high) ÷ 25 × 100. Aroon Down = (25 − bars since the 25-bar low) ÷ 25 × 100.

A new high today gives Aroon Up of 100. A high 25 bars ago gives 0.

How we find it

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

  1. Count bars since the highest high in the last 25.
  2. Aroon Up = (25 − that count) ÷ 25 × 100.
  3. Same for the lowest low: Aroon Down.
  4. Plot both lines.

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

How to read it

  • Teal line is Aroon Up. Red is Aroon Down.
  • Up at 100: a new high today.
  • Down at 100: a new low today.

Status labels you may see

LabelWhat it means
Up above DownHighs are more recent than lows.
Down above UpLows are more recent than highs.
Both lowBoth under 50: no recent extremes.

What cancels it

Nothing cancels it.

What traders check next

  • How long Up stays near 100.
  • The crosses.
  • Price range.

Limits

  • Based on single extreme bars.
  • Jumpy.
  • Window is a choice.

Try it in forecastviz

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

Questions

Why 'Aroon'?

A Sanskrit word for 'dawn's early light'.

What do 0 and 100 mean?

100: extreme today. 0: extreme 25 or more bars ago.

Related trends

Further reading

  • Wilder, New Concepts in Technical Trading Systems
  • Chande and Kroll, The New Technical Trader
  • Hosoda, Ichimoku Kinko Hyo
  • Murphy, Technical Analysis of the Financial Markets
  • Kaufman, Trading Systems and Methods

Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.