The Aroon Indicator, developed by Tushar Chande in 1995, is a trend-identification tool consisting of two lines — Aroon Up and Aroon Down — that measure the time elapsed since the highest high and lowest low within a specified lookback period, typically 25 periods. Aroon Up measures how recently the highest high occurred (as a percentage of the lookback period), while Aroon Down measures how recently the lowest low occurred. Readings near 100 for Aroon Up indicate that a new high was made very recently — signalling a strong uptrend. Readings near 100 for Aroon Down indicate a very recent new low — signalling a strong downtrend. When Aroon Up is above 70 and Aroon Down is below 30, a strong uptrend is confirmed. When Aroon Down is above 70 and Aroon Up is below 30, a strong downtrend is confirmed. The crossover of Aroon Up above Aroon Down signals a potential trend change to bullish, while the reverse crossover signals a bearish shift. In Indian equity markets, the Aroon Indicator is used by positional traders on Nifty 50 and sectoral indices to identify trend inception and avoid trading against the prevailing trend during momentum phases.
For android only
