What it does
Aroon Trend answers a simple question: how long ago did price make its most recent high and its most recent low? It shows the answer as two lines from 0 to 100, Aroon Up and Aroon Down, plus the Aroon oscillator (Up minus Down) as a green or red histogram.
When Aroon Up crosses above Aroon Down on a closed bar, a green arrow appears; the opposite cross gives a red arrow.
How it works
For a length n (25 by default), the indicator looks at the last n + 1 bars, including the current one:
- Bars since high = number of bars since the highest high in that window. If the same high appears twice, the more recent one is used.
- Aroon Up = 100 × (n − bars since high) ÷ n.
- Bars since low and Aroon Down are calculated the same way with the lowest low.
- Aroon oscillator = Aroon Up − Aroon Down, ranging from −100 to +100. It is green at or above zero and red below.
So a fresh high on the current bar gives Aroon Up = 100, and a high made 25 bars ago gives Aroon Up = 0. The window shows levels at +70, 50, 0 and −70.
How to use it
- Aroon Up above 70 with Aroon Down below 30 describes a market making regular new highs: an uptrend. The reverse describes a downtrend.
- Both lines low at the same time means neither new highs nor new lows are being made: consolidation. Breakouts from these periods are worth watching.
- An Up/Down cross is an early hint that the more recent extreme has switched sides. It is more meaningful when the leading line then pushes above 70.
- The oscillator is a compact way to see the balance of the two: steady readings above +50 or below −50 point to persistent trends.
- It suits H1 to D1 on most instruments and pairs well with price-chart trend tools.
Settings
| Input | Default | What it changes |
|---|---|---|
| Aroon length | 25 | Window for the most recent high and low; longer gives slower, steadier lines |
| Show oscillator histogram | true | Hide it to see only the two lines |
| Strong-trend level | 70 | Position of the reference levels |
| Pop-up alert / Push notification | false / false | One alert per closed bar on a new cross |
Limitations
- Aroon only measures time since extremes, not how far price has moved. A tiny new high counts the same as a large one.
- Lines jump in steps when an old extreme drops out of the window, which can cause sudden crosses.
- In sideways markets the lines cross often, giving signals without follow-through.
- Values on the live bar can change if it makes a new high or low; arrows and alerts are confirmed on the bar close.
- This is an educational aid. Trading involves substantial risk of loss.