AROON

Indicator Description

AROON is a trend-following indicator that identifies the beginning and strength of a trend by calculating the time it takes for the price to reach its highest and lowest points within a specified period.

Function Information

• Function Name: AROON
• Input Parameters:
  • High: High price
  • Low: Low price
• Parameter Settings:
  • timeperiod: Time period (default: 14)
• Output:
  • aroondown: Downward trend strength
  • aroonup: Upward trend strength

Calculation Principle

AROON is calculated using the following formula:

AroonUp = ((timeperiod - daysSinceHigh) / timeperiod) * 100
AroonDown = ((timeperiod - daysSinceLow) / timeperiod) * 100

Where:

• daysSinceHigh is the number of days since the highest price
• daysSinceLow is the number of days since the lowest price
• timeperiod is the time period

Usage Scenarios

1. Trend Identification
2. Trend Strength Assessment
3. Trading Signal Generation
4. Market State Analysis

Usage Recommendations

1. AroonUp > AroonDown indicates an upward trend
2. AroonDown > AroonUp indicates a downward trend
3. Watch for crossover signals
4. Pay attention to market environment changes