Blog : Aroon Indicator
Aroon
The Aroon Indicator, often referred to as Aroon Up Down, measures how many periods have passed since the price recorded an n-period high or low, with "n" being a trader-defined number of periods. For example, a 14-day Aroon-Up calculates the number of days since the last 14-day high, while a 14-day Aroon-Down does the same for the 14-day low. The values range from 0 to 100, indicating the strength of a trend: the closer the value is to 100, the stronger the trend. The Aroon indicator is useful for identifying trends and periods of consolidation.
| Aroon Inputs | |||
|---|---|---|---|
| Trend Following | Mean Reversion | ||
| Length | 14 | Length | 14 |
| Aroon | Long - Entry Trigger | Long - Exit Trigger | Short - Entry Trigger | Short - Exit Trigger |
|---|---|---|---|---|
| Trend Following | Aroon Cross Up | Aroon Cross Down | Aroon Cross Down | Aroon Cross Up |
| Mean Reversion | Aroon Upper < 30 and Aroon Upper> Previous Aroon Upper | Aroon Upper > 70 and Aroon Upper < Previous Aroon Upper | Aroon Lower < 30 and Aroon Lower> Previous Aroon Lower | Aroon Lower > 70 and Aroon Lower < Previous Aroon Lower |
| Aroon | Long - Entry Confluence | Long - Exit Confluence | Short - Entry Confluence | Short - Exit Confluence |
| Trend Following | Aroon Upper > Aroon Lower | Aroon Lower > Aroon Upper | Aroon Lower > Aroon Upper | Aroon Upper > Aroon Lower |
| Mean Reversion | Aroon Upper < 30 and Aroon Upper> Previous Aroon Upper | Aroon Upper > 70 and Aroon Upper < Previous Aroon Upper | Aroon Lower < 30 and Aroon Lower> Previous Aroon Lower | Aroon Lower > 70 and Aroon Lower < Previous Aroon Lower |