Aroon
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LibraryTrend

Indicator

Aroon

Tushar Chande's Aroon: how many bars have passed since the highest high and since the lowest low, as two lines from 0 to 100.

TrendOwn pane1 inputAroon

How it is calculated

Over a window of length + 1 bars, up is 100 times (length minus the bars since the highest high) divided by length, down the same for the lowest low. A new high gives 100, a high length bars ago 0; on a tie the most recent bar counts. The oscillator is up minus down. The first value is on bar length, counting from 0, as TA-Lib's AROON and AROONOSC.

Reference: TA-Lib AROON, AROONOSC (Chande 1995)

How to read it

Up near 100 with down near 0 points to a fresh uptrend, the reverse to a downtrend. Both low means no new extremes, often a range. Up crossing down is an early sign of a trend change; 70 and 30 are the usual guides.

In a strategy

Enter long when ctx.ind("aroon", length=14).up crosses above .down, or use .osc above 0 as a trend filter.

Inputs

InputTypeDefaultRange or choices
LengthlengthWhole number14min 1, max 5000

What it draws

LineDrawn as
UpLine
DownLine

Moves between 0 and 100. Guide lines at 30, 70.

Used in

No strategy template reads it yet.

OrionQuant