Identify new trend emergence and trend strength with precision timing.
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Overview
The Aroon indicator, developed by Tushar Chande in 1995, measures how recently a new high or low has been recorded within a lookback period. "Aroon" is a Sanskrit word meaning "dawn's early light" — appropriate for an indicator designed to detect the earliest signs of a new trend.
The indicator has two lines: Aroon Up = ((N − Bars Since N-Period High) ÷ N) × 100 and Aroon Down = ((N − Bars Since N-Period Low) ÷ N) × 100. Both range from 0 to 100. The default period is 25.
High Aroon Up (above 70) indicates that price recently made a high near the top of the lookback period — bullish strength. High Aroon Down (above 70) indicates a recent low — bearish strength. When Aroon Up is above 70 and Aroon Down is below 30 simultaneously, a strong uptrend is likely in place.
The Aroon Oscillator (Aroon Up − Aroon Down) simplifies interpretation: positive values indicate bullishness, negative values bearishness. Crossovers of the two Aroon lines provide trend change signals — when Aroon Up crosses above Aroon Down, a bullish trend may be emerging; the reverse for a bearish trend.
Aroon is particularly useful for identifying the very early stages of a trend — before most momentum indicators confirm. This makes it valuable for position traders and trend followers looking to enter at the earliest possible point with controlled risk.
Strategy Code
This is a TradingView Pine Script example for this indicator. Paste it into the TradingView Pine Editor, add it to your chart, and adjust inputs for your market and timeframe.
//@version=6
strategy("Aroon Indicator", overlay=true)
fastLen = input.int(20, "Fast Length")
slowLen = input.int(50, "Slow Length")
fast = ta.ema(close, fastLen)This is a thinkorswim ThinkScript example for this indicator. Open thinkorswim, create a custom study, paste the script, and apply it to your chart.
input length = 14;
def up = AroonUp(length = length);
def down = AroonDown(length = length);
def buySignal = up crosses above down;
def sellSignal = down crosses above up;Join thousands of traders who use auto-Trading to execute this strategy automatically, 24/7.
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