The Aroon indicator is designed to reveal the beginning of a new trend. Aroon means “Dawn’s Early Light” in Sanskrit. It was developed by Tushar Chande in 1995. It is made up of two lines: one line is called “Aroon up”, which measures the strength of the uptrend, and the other line is called “Aroon down”, which measures the downtrend.
The indicator reports the time it is taking for the price to reach, from a starting point, the highest and lowest points over a given time period, each reported as a percentage of total time.
When the Aroon up (green) line spikes up, it’s the start of a new uptrend. When the Aroon down (red) line spikes up, it’s the start of a new downtrend.<< Back to Glossary Index