The Aroon indicator is a technical indicator used to identify price trend changes as well as the strength of that trend. In general, the indicator measures the duration between highs and lows over a given time period.
How to find it: This is a built-in indicator that is commonly found on various platforms, like TradingView. You have to type “aroon” in the indicator search box option.
How does it work? The AROON indicator is a technical analysis tool that is used to help traders and investors spot and predict potential market reversals. The aroon indicator consists of two lines, the aroon up (AU) and the aroon down (AD), which count the number of periods since a new high or low was reached.
The higher the AU and AD values, the more likely it is that a reversal will occur. There are two lines which oscillate between 0 to100.
Buy Signal: The aroon up crosses above the aroon down
Sell Signal: The aroon down crosses above the aroon up