Aroon Indicator
factor.formula
Aroon Up:
Aroon Down:
Aroon Indicator:
Parameter explanation:
- :
The calculation period, i.e. the length of the time window to look back, indicates the time period used to calculate the Aroon indicator. The default value is usually 25 trading days, but it can also be adjusted according to specific trading strategies and market conditions. Shorter periods can reflect price changes faster, but may generate more noise; longer periods are smoother, but may delay the appearance of signals.
- :
The number of trading days that have passed since the highest price in the most recent cycle. The smaller this value is, the easier it is for the price to hit a new high in the near future, which also indicates that the upward trend may be stronger.
- :
The number of trading days that have passed since the lowest price in the most recent cycle. The smaller this value is, the easier it is for the price to hit a new low in the near future, which also indicates that the downward trend may be stronger.
factor.explanation
The Aroon indicator measures the strength and direction of a trend by calculating the time interval between new highs and new lows in a specific period. The Aroon Up line measures the speed at which prices create new highs. The higher the value, the stronger the upward momentum; the Aroon Down line measures the speed at which prices create new lows. The higher the value, the stronger the downward momentum. The value of the Aroon indicator is the Aroon Up line minus the Aroon Down line. The positive and negative values and the size of the value can help determine the direction and strength of the trend: the larger the positive value, the stronger the upward trend; the larger the negative value, the stronger the downward trend; close to zero means that the market is in a sideways or unclear trend state. Usually, the Aroon indicator is used in conjunction with the Aroon Up line and the Aroon Down line to better identify trend reversal signals. For example, when the Aroon Up line crosses the Aroon Down line, it may indicate the beginning of an uptrend.