Description

• Developed by Tushar Chande, Aroon Oscillator is calculated by subtracting Aroon up from Aroon Down
• It oscillates between -100 and 100
• Aroon oscillator will be high when stock is in rising mode and low when stock is in falling mode

Interpretation

• Aroon oscillator below -50 indicates strong downtrend. At this time Aroon down is at high value & Aroon Up will be low
• Aroon oscillator above 50 indicates strong uptrend
• Aroon crossing zero level can be used as a trading strategy for buying & selling signals

Default Parameters Used/Inputs

• High Line
• Low Line
• Bars

Returns/Output

Aroon Oscillator values of stock for the specified period

Formula

Aroon Oscillator = Aroon Up – Aroon Down
where,
Aroon Up = [(n – Period Bar since Highest High)/N] * 100
Aroon Down = [(n – Period Bar since