Aroon

RECENT NEWS
The Economic Times  Jul 18  Comment 
The unique indicator focuses on time relative to price unlike other momentum oscillators, which mainly focus on price relative to time, experts said.
Benzinga  Jan 12  Comment 
One popular metric that technical analysts use to find new trends and measure the strength of those trends is the Aroon Oscillator. The Aroon Oscillator was developed in the 1990’s by Tushar Chande. Typically, metrics called Aroon-Up and...
Wall Street Sector Selector  May 2  Comment 
There are many ways to determine the strength of a trend and one that has a very strong following is the Average Directional Indicator (ADX)




 
TOP CONTRIBUTORS

The Aroon indicator shows whether a stock is trending and how strong that trend is.

Aroon was developed in 1995 by Tushar Chande. In the Sanskrit language "aroon" means "dawn's early light". Tushar Chande chose this name since the indicator's purpose is to allow a trader to determine the beginning of a new trend, or the end of an existing trend.

The Aroon indicator has an up line and a down line. When the up and down lines are moving lower in close proximity, it signals that a consolidation phase is under way and no strong trend is evident. When the up line drops below 50, it indicates that the current trend has lost its upward momentum. When the down line drops below 50, the current downtrend has lost its momentum. Values above 70 indicate a strong trend in the same direction as the Aroon (up or down) is under way.

The mathematical formula for determining the Aroon up line is:

[ [ (# of periods) - (# of periods since highest high during that time) ] / (# of periods) ] x 100

The mathematical formula for determining the Aroon down line is:

[ [ (# of periods) - (# of periods since lowest low during that time) ] / (# of periods) ] x 100

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki