Aroon Oscillator

A single that differentiates between Aroon up and Aroon down is called Aroon Oscillator. It is found by subtracting Aroon Down from Aroon Up. It usually measures the strength of a trend. It is an indicator system which is used to find if the price is on trend nd strength of trend as well. Aroom Oscillator was developed by Chande in 1995.
“Aroon” means “Dawn’s Early Light” in Sanskrit and Chande chose that name for this indicator since it is designed to reveal the beginning of a new trend.
As the centerline, the oscillation of Aroon Oscilltier ranges from -100 ad +100. It identifies an uptrend going towards its upper trend and when moving towards the lower limit, it shows a downward trend. The closer Aroon Oscillator will show the stronger trend.
All three are comprised of a single parameter which is the number of time periods to use in the calculation.
As both Aroon(up) and Aroon(down) oscillate between 0 and +100, the Aroon Oscillator ranges from -100 to +100 with zero serving as the crossover line.
for a given time period, the calculation of Aroon(up)  is carried out by finding how much time (on a percentage basis) elapsed between the start of the time period and the point at which the highest closing price during that time period occurred.
When the price is setting new highs for the time period, Aroon(up) will be 100.
If the price has moved lower every day during the time period, Aroon(up) will be zero.
Aroon(down) is calculated in just the opposite manner, looking for new lows instead of new highs.


Aroon Oscillator



Consolidation


When Aroon(up) and Aroon(down) move towards the lower in close proximity then a consolidation phase continue and no strong trend is evident.


Aroon Oscillator



Upward Momentum


When Aroon(up) dips below 50, it indicates that the current trend has lost its upward momentum.


Downward Momentum


When Aroon(down) dips below 50, the current downtrend has lost its momentum.


Trend Direction


Values above 70 indicate a strong trend in the same direction as the Aroon (up or down) is underway.
Values below 30 indicate that a strong trend in the opposite direction is underway.


New Trend


The Aroon Oscillator signals an upward trend is underway when it is above zero and a downward trend is underway when it falls below zero.


Trend Strength


When the oscillator is away from the zero line then trend will be stronger.

 

A

Abandoned Baby | Account Statement Report | Account Value | Accumulation Area | Accumulative Swing Index ASI | Address | ADDY | ADP National Employment Report | Advance Or Decline Index | Afghanistan Afghanis | Agency Model | Aggressor | Alan Bollard | Alan Greenspan | Albania Leke | Algerian Algeria Dinars | Alligator | Altcoin | Analysts | Andrews Pitchfork | Angela Merkel | Angola Kwanza | Anti Money Laundering AML | ANZ Commodity Price Index | Application Programming Interface API | Appreciation | Arbitrage | Argentina Pesos | Armenian Drams | Aroon Oscillator | Aroon Up And Down | Aruban Guilder | Ascending Channel | Ascending Trend Line | Ascending Triangle | ASIC Mining | Asset | Asset Purchase Programme APP | Asset Purchases | Asymmetric Encryption | Asymmetric Slippage


B

Bag | Bag Holder | Bahmas Dollars | Bahrain Dinars | Bail In | Bail Out | Balance Of Trade | Baltic Dry Index | Bangladesh Taka | Bank Levy | Bank Of Canada BOC | Bank Of England BOE | Bank Of International Settlement BIS | Bank Of Japan BoJ | Bank Run | Bank Run | Banking Institutions | Bar Chart | Barbados Dollars | Base Currency | Base Rate | Basing | Basing Point | Bear | Bear Flag | Bear Market | Bear Trap | Bearish | Binary Options | Bitcoin Cash | Bitcoin Maximalist | Bitcoin Or BTC | Block | Block Explorer | Block Header | Block Height | Block Reward | Blockchain | Blue Chip | Bolivia Bolivianos | Bollinger Bands | Bond | Bond Auction | Bond Yeild | Book | Boris Schlossberg | Botswana Pulas | Brazilian Brazil Real | Breakdown | Breakeven | Breakout | Brent Crude | Bretton Woods Agreement Of 1944 | BRIC | Broadening Formation | Broker | BTD | BTFD | Bucket Shop | Bulgarian Leva | Bull | Bull Flag | Bull Market | Bull Trap | Bullish | Bullish Engulfing Pattern | Bundesbank | Burundi Francs | Business Inventories | Buy Side | Buying Pressure


C

Cable | Camarilla Pivot Points | Cambist | Cambodian Riels | Canadian Dollar | Cape Verde Escudos | Carbon Credits | Cardano ADA | Carry Trade | Cash Market | Catalyst | Cayman Islands Dollars | Cboe Eurocurrency Volatility Index | Central Bank | Central Bank Digital Currency | Central Bank Intervention | Central Counterparty Clearing Houses CCPs | Central Limit Order Book Or CLOB



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