P
PipsGrowth

Key Takeaways

Difficulty:Intermediate
Reliability:High
Category:advanced
Timeframes:4H, Daily, Weekly

Aroon Indicator

advancedšŸ“Š 4H, Daily, Weekly

Identifies trend changes and strength by measuring time since highest high and lowest low.

Formula

Code
Aroon Up = ((Period - Days Since High) / Period) Ɨ 100
Aroon Down = ((Period - Days Since Low) / Period) Ɨ 100

Detailed Explanation

Aroon measures how long since price made a high or low, expressed as a percentage.

**Reading Aroon:** - High Aroon Up + Low Aroon Down = Uptrend - Low Aroon Up + High Aroon Down = Downtrend - Both low = Consolidation

Parameters

Period
Default: 25
Lookback period

šŸ“ˆ Bullish Signals

Aroon Up crosses above Aroon Down, Up > 70

šŸ“‰ Bearish Signals

Aroon Down crosses above Aroon Up, Down > 70

Python Implementation

Aroon indicator calculation

Python
import pandas_ta as ta
aroon = ta.aroon(df['high'], df['low'], length=25)
df['Aroon_Up'] = aroon['AROONU_25']
df['Aroon_Down'] = aroon['AROOND_25']
df['Aroon_Osc'] = aroon['AROONOSC_25']

TradingView Pine Script

Try on TradingView
JavaScript
//@version=5
indicator("Aroon")
aroon_up = ta.aroon(high, 25)
aroon_down = ta.aroon(low, 25)
plot(aroon_up, "Up", color=color.green)
plot(aroon_down, "Down", color=color.red)
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MT5 MQL5 Code

C++
// Custom Aroon implementation needed

Python Libraries

pandas-ta
Technical analysis
pip install pandas-ta

Common Mistakes

āœ—Ignoring when both lines are low (consolidation)
āœ—Not using crossovers for timing

Confirmation Signals

ADX
Volume
Price action

Best For

Trend identificationTrend strength measurementTiming entries

šŸ’” Pro Tips

  • ā€¢Unique time-based approach
  • ā€¢Good for identifying consolidation (both lines < 50)
  • ā€¢Aroon Oscillator = Up - Down
Last updated: December 29, 2024

Educational Disclaimer

This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.

Learn More

Investopedia - Technical IndicatorsBabyPips - Technical IndicatorsMetaTrader 5 Docs

Frequently Asked Questions

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