Aroon Indicator
Overview
The Aroon Indicator measures the number of periods since the most recent high and low, providing an early signal of whether a new trend is forming or weakening. It is especially useful for catching early trend changes in stocks and crypto before lagging indicators react. Browse our full indicator guide library to pair Aroon with the ADX for stronger trend-strength confirmation.
How It Works
Aroon Up = [(N − periods since N-period high) / N] × 100. Aroon Down = [(N − periods since N-period low) / N] × 100. Default period is 25. Both lines oscillate between 0 and 100, and their crossovers signal directional changes.
Key Signals
- Aroon Up above 70 and Aroon Down below 30 = strong uptrend.
- Aroon Down above 70 and Aroon Up below 30 = strong downtrend.
- Aroon Up crossing above Aroon Down = bullish crossover signal.
- Both lines below 50 simultaneously = consolidation or range-bound market.
Common Mistakes
- Ignoring the consolidation signal when both lines are near 50 — avoid trend strategies here.
- Using Aroon without volume confirmation for breakout entries.
- Not adjusting the lookback period for different asset volatilities.
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