Aroon Indicator
A pair of lines measuring how recently the highest high and lowest low occurred within a lookback window.
Formula
Aroon Up = ((n - periods since n-period High) / n) x 100; Aroon Down = ((n - periods since n-period Low) / n) x 100
Unit
%
In depth
Aroon is unusual in measuring time rather than price: it asks how long ago the extreme occurred, not how far price has moved. A reading of 100 means the extreme happened in the current period, and a reading near 0 means it happened at the far edge of the window. Because it ignores magnitude entirely, a tiny new high and an enormous one produce identical readings — a limitation that is easy to miss. It is described here as a calculation about timing, with no forecast attached.
Worked example
Over a 25-period window the highest high occurred 3 periods ago: Aroon Up = (25 - 3) / 25 x 100 = 88. The lowest low occurred 19 periods ago: Aroon Down = (25 - 19) / 25 x 100 = 24.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Aroon Indicator” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.