Aroon Indicator
A measure of how recently the last extreme was made — a 'freshness gauge' for trends. Tushar Chande's unusual idea: read not the direction of price, but the youth of that direction.
Overview
The Aroon Indicator was introduced in 1995 by Tushar Chande. Aroon is Sanskrit for "dawn light," and the name reflects the indicator's explicit ambition: to detect the beginning and end of a trend, not just its presence.
Most trend indicators ask "in what direction has price moved, and by how much?" Aroon asks something different and stranger: how many bars ago did the most recent extreme occur? Trend strength is read through the recency of the last high or low. That choice of measurement is, by itself, an unusual reframing.
Aroon has three components: Aroon Up (how recently the period's high was made), Aroon Down (how recently the period's low was made), and the Aroon Oscillator (Up minus Down). The first two oscillate between 0 and 100; the oscillator runs from −100 to +100.
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