Aroon Oscillator


DEFINITION of 'Aroon Oscillator'


BREAKING DOWN 'Aroon Oscillator'

Aroon up and Aroon down are the two components that comprise the Aroon indicator. The notion is that an asset is trending up when a stock is trading near the high of its range. Aroon up is used to measure the strength of the uptrend, while Aroon down is used to measure the strength of the downtrend. Many traders will watch for a cross above the zero line to suggest the beginning of a new uptrend. Conversely, a cross below zero would indicate the start of a downtrend. Readings near zero suggest that a security may be trending sideways and that this period of consolidation could continue.

  1. Sideways Trend

    Describes the horizontal price movement that occurs when the ...
  2. Consolidation

    In technical analysis, the movement of an asset's price within ...
  3. Trend

  4. Oscillator

  5. Aroon Indicator

    A technical indicator used for identifying trends in an underlying ...
  6. Downtrend

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  1. What are the differences between an Aroon indicator and an Aroon oscillator?

    The Aroon oscillator is an extension of the Aroon indicator. More accurately, it is an interpretation of the relationship ... Read Full Answer >>
  2. How can I build a trading strategy based on the Aroon indicator?

    One of the primary goals of technical market analytics is to identify performance trends in individual securities or indexes. ... Read Full Answer >>

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