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
| Input | Type | Default | Range or choices |
|---|---|---|---|
Lengthlength | Whole number | 14 | min 1, max 5000 |
What it draws
| Line | Drawn as |
|---|---|
| Up | Line |
| Down | Line |
Moves between 0 and 100. Guide lines at 30, 70.
Used in
No strategy template reads it yet.