Aroon Oscillator


Function Name: aroon_osc

Tags: Oscillator

Category: Momentum

Developed in 1995, Aroon is an indicator system that can be used to determine whether a stock is trending or not and how strong the trend is.

The Aroon indicator system consists of two lines, Aroon Up and Aroon Down. It takes a single parameter which is the number of time periods to use in the calculation. Aroon Up is the amount of time (on a percentage basis) that has elapsed between the start of the time period and the point at which the highest price during that time period occurred. If the stock is setting a new low for the given time period, Aroon Up will be zero. On the other hand, if the stock closes higher than it has during the rest of the time period, Aroon Up will be +100. For each subsequent period that passes without another new high, Aroon Up moves down by an amount equal to (1 / number of periods) x 100. Aroon Down is calculated in just the opposite manner, looking for new lows instead of new highs.

Aroon Oscillator is designed by subtracting Aroon Down from Aroon Up. Since Aroon Up and Aroon Down oscillate between 0 and +100, the Aroon Oscillator oscillates between -100 and +100 with zero as the center crossover line. The Aroon Oscillator signals an upward trend is underway when it is above zero and a downward trend is underway when it falls below zero. The further away the oscillator is from the zero line, the stronger the trend.


Author:   Tushar Chande






Default Value: 14  |  Minimum: 0  |  Maximum: 9999


Type: Numeric



Default Value: -1


Type: Boolean



Default Value: 0


Type: Boolean