Trend indicator
Aroon Indicator
Measures how recently new highs and lows occurred to flag trend changes.
What is Aroon Indicator?
The Aroon indicator, by Tushar Chande, measures how many bars have passed since the highest high (Aroon Up) and lowest low (Aroon Down) within a lookback, each on a 0–100 scale. It's designed to detect the start and strength of trends.
How it works
When Aroon Up is high (near 100) and Aroon Down low, recent highs dominate, a strong uptrend. Crossovers between the two lines signal trend changes, and both being low marks a range. It catches new trends earlier than many moving-average methods.
How traders use it
- ▸Crossovers: Aroon Up crossing above Down signals an uptrend.
- ▸Strength: readings near 100 confirm a strong trend.
- ▸Range detection: both lines low means consolidation.
- ▸Filter: trade only when one side dominates.
Build Aroon Indicator without code in Algovex
Aroon is a node in Algovex with Up/Down outputs, build crossover or strength rules, backtest, and export. No code required.
Key parameters
| Parameter | What it does |
|---|---|
| length | Lookback period (commonly 14 or 25). |
Frequently asked questions
What is the Aroon indicator used for?
Aroon identifies whether a market is trending and how strong that trend is, based on how recently it made new highs or lows. Crossovers of Aroon Up and Down flag trend changes. Algovex lets you backtest Aroon-based rules.