Aroon: recency of highs and lows, ties and direction
Aroon Up and Down measure how recently the highest high and lowest low occurred in a selected interval.
Before this lesson
These lessons provide background; you can still read this page now.
What the indicator measures
Aroon Up and Down measure how recently the highest high and lowest low occurred in a selected interval. They focus on time since an extreme rather than the size of the price change. A small new high and a large breakout can therefore both put Aroon Up at 100.
Calculation and units
Up = 100×(N − bars since highest high)/N; Down uses the lowest low. TradingHub searches offsets 0 through N, so N=14 compares fifteen candles spanning fourteen bar intervals. Equal extremes select the most recent occurrence. Those inclusive-window and tie conventions matter when matching other libraries.
Worked educational example
With N=14 and the latest highest high three bars ago, Up is 100×11/14 = 78.57. A lowest low seven bars ago gives Down 50. A new high on the current bar gives Up 100 regardless of whether it exceeds the prior high by one tick or a large amount.
Reading it without overclaiming
High Up with low Down describes the recency pattern of the chosen extremes. It does not establish the strength or size of future returns. Repeated small new highs can keep Up high. Live candles can change both extremes before completion, and an old extreme leaving the window can change the values abruptly.
How TradingHub implements it
The native default is period 14 with a reference threshold of 50. Both lines are drawn in the indicator pane or optional overlay. The output starts at index N. It is Aroon Up/Down, not the single Aroon oscillator defined as their difference. Threshold changes do not change the extrema calculation.
Comparisons that matter
ADX summarizes smoothed directional movement, while Aroon summarizes elapsed intervals. RSI adds another distinct gain/loss transformation. Describe exactly which line crossed which level, and check whether a data-window change rather than a market event caused the apparent jump.
A reproducible chart review
Open the existing Trading chart and choose the same market, interval and closed observation time as your comparison. Record every calculation parameter before changing one at a time. Match source fields, history length and the bar window. Native indicators calculate from the supplied visible slice; Indicator Studio calculates from its available chart snapshot. A difference after panning may therefore be a window or warmup effect rather than a new market event.
Limits and next lesson
The illustration uses constructed candles, not a dated market observation or a backtest. A live candle can change until it closes. Missing history, volume units and implementation conventions limit comparisons. No indicator guarantees a direction, an execution price or protection from loss. Use the related lessons to separate definitions, observed values and possible explanations; a correct quiz records learning progress, not trading competence.
Knowledge check
Does Aroon Up 100 quantify the size of a new high?
- Yes; price rose 100%
- Yes; it guarantees a strong trend
- No; it says the selected high occurred on the current bar
Show explanation
Aroon measures recency; the distance by which an extreme was exceeded is not in this ratio.
Interactive checking needs JavaScript; the lesson and explanation remain readable.
Primary sources and scope
Educational scenarios are not execution guarantees, forecasts or personal recommendations. Check current product rules at their source.
Content revised: . Editorial responsibility: TradingHub. No independent professional certification is claimed.