Tools & IndicatorsAroon
TrendIntermediate[ MP.IND.AROON ]
Aroon
Aroon Indicator
The Aroon indicator ('dawn' in Sanskrit), developed by Tushar Chande in 1995, measures how much time has passed since the last high (Aroon Up) and the last low (Aroon Down).
Category
Trend
Difficulty
Intermediate
Markets
Forex, Stocks, Commodities
Timeframe
4H, Daily
Combinations
2 tools
Signals
4 setups
LIVE CHARTAroon ACTIVE
[ HOW TO READ THE CHART ]
Green Zone: Aroon Up > 70 + Aroon Down < 30 → Strong uptrend
Red Zone: Aroon Down > 70 + Aroon Up < 30 → Strong downtrend
Main Line: Aroon Up cross above Aroon Down → Bullish trend change
Confluence: Combine Aroon with ADX for maximum probability
[ WHAT TO WATCH ON THE CHART ]
Observe how Aroon behaves relative to key price points. Note moments when the indicator reaches extreme levels and how price reacts. Look for divergence patterns between the indicator and price movement.[ FORMULA ]
Aroon Up = ((N - periods since last high) / N) × 100 Aroon Down = ((N - periods since last low) / N) × 100 N = period (default 25)
What signals does Aroon generate?
Aroon Up > 70 + Aroon Down < 30 → Strong uptrend
Aroon Down > 70 + Aroon Up < 30 → Strong downtrend
Aroon Up cross above Aroon Down → Bullish trend change
Both below 50 → Consolidation: avoid trend strategies
What is Aroon and how does it work?
The Aroon indicator ('dawn' in Sanskrit), developed by Tushar Chande in 1995, measures how much time has passed since the last high (Aroon Up) and the last low (Aroon Down). The idea: in an uptrend, price should reach new highs frequently (Aroon Up near 100). In a downtrend, new lows frequently (Aroon Down near 100). It's one of the most effective indicators for identifying new trends in their early phases.
How do you use Aroon in trading?
Aroon Up > 70 + Aroon Down < 30 = strong uptrend in progress. Aroon Down > 70 + Aroon Up < 30 = strong downtrend. The crossover between Aroon Up and Aroon Down is the trend change signal. Both < 50 = consolidation/ranging.
What are the strengths of Aroon?
Identifies new trends in early phases
Clear and direct
Good for commodities and forex
What are the limitations of Aroon?
Less self-fulfilling (fewer traders use it)
Requires markets with clear trends
Lagging in fast reversals
[ RELATED INDICATORS ]
[ RELATED CONTENT ]
Glossary:Consolidation
Liked this? Get one like it every week
Weekly market setups, new guides and AI insights. Free, zero spam.