Measures trend strength by time rather than price. By comparing how many bars have passed since the last high and the last low, it shows whether buyers or sellers are winning on a single line from -100 to +100, Tushar Chande's oscillator.
The Aroon Oscillator is built from the Aroon indicator devised by Tushar Chande.
Where many indicators track the size of price moves, Aroon watches time.
How many bars have passed since the last high? How many bars since the last low? Comparing these two elapsed times, it shows which side is winning right now, the advance or the decline.
The more recent the high within the lookback, the higher Aroon Up runs; the more recent the low, the higher Aroon Down runs. The Aroon Oscillator is their difference, namely Aroon Up minus Aroon Down.
A positive value means the advance is dominant, a negative value means the decline is dominant, and a value near zero means no clear direction. The range is bounded from -100 to +100.
What makes this indicator distinct is that it measures trend strength not by how far price moved, but by how recently a new extreme was set.
How to Read
OANDA:USDJPY
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