Aroon Indicator
Original schematic showing the guide's principal visual relationships.
Formula and components
Two lines measuring how recently the highest high and lowest low occurred within a lookback.
Aroon Up/Down = 100 × (n − periods since high/low) ÷ n.
How it works
The indicator transforms price, range, or volume observations over a selected lookback. Shorter settings react faster but create more noise; longer settings respond more slowly and emphasize the underlying regime. Always compare the reading with price structure and timeframe.
How to read it
Aroon Up near 100 means a recent high; Aroon Down near 100 means a recent low. Crosses and persistent separation describe directional control.
Confirmation checklist
Use slope, price position, and agreement across more than one lookback. A trend reading is more reliable when price structure and directional strength point the same way.
Limitations and false signals
Aroon measures recency rather than move size, so a marginal new extreme can create a large reading change.