The Aroon oscillator, a type of technical indicator, has an important function in determining whether or not a specific asset is currently participating in a trend and, more specifically, whether or not the price is establishing new highs or lows throughout the calculation period (typically 25). Furthermore, the indicator can be used to predict the start of a new trend. Inside the Aroon indicator, there are two lines: an Aroon-up line and an Aroon-down line. When the Aroon-up crosses over the Aroon-down, it indicates a possible trend change. An upswing is in place if the Aroon-up reaches and remains close to 100 while the Aroon-down remains close to zero. It is also true in the opposite direction.

The Aroon indicator is a technical analysis tool used to identify the strength and direction of a trend in the market. Developed by Tushar Chande in 1995, it consists of two lines: Aroon-Up and Aroon-Down. The Aroon-Up measures the time since the highest price within a specific period, while the Aroon-Down tracks the time since the lowest price.

When Aroon-Up is above Aroon-Down, it indicates a strong upward trend; conversely, when Aroon-Down is above Aroon-Up, a strong downward trend is suggested. Values close to 100 signal a strong trend, while values near 0 indicate a weak trend or consolidation. Traders use the Aroon indicator to detect the beginning of new trends or to confirm existing ones.