Member SinceNov 22, 2022
HowtonMay 24, 2023 a 12:26
The Aroon Oscillator is calculated by subtracting the Aroon Down value from the Aroon Up value. The Aroon Up measures the number of periods since the highest high within a given period, while the Aroon Down measures the number of periods since the lowest low within a given period. By subtracting these values, the Aroon Oscillator oscillates around zero.
The oscillator's values range between -100 and +100, where positive values indicate an uptrend and negative values indicate a downtrend. A reading of zero suggests a balanced or sideways market.
Traders and analysts use the Aroon Oscillator to identify potential trend reversals, confirm the strength of a trend, and generate buy or sell signals. When the oscillator crosses above zero, it may signal the start of an uptrend, while a crossover below zero may indicate the start of a downtrend.