Stock Trading

Aroon Oscillator Back to Index


Developed by Tushar Chande, the Aroon Oscillator is based upon his Aroon Indicator. Much like the Aroon Indicator, the Aroon Oscillator measures the strength of a trend.
The Aroon Oscillator is constructed by subtracting Aroon Down from Aroon Up. Since Aroon Up and Aroon Down oscillate between 0 and +100, the Aroon Oscillator oscillates between -100 and +100 with zero as the center crossover line. The Aroon Oscillator signals an uptrend if it is moving towards its upper limit. It signals a downtrend when it is moving towards the lower limit. The closer the Aroon Oscillator value is to either extreme the stronger the trend.