The Aroon indicator attempts to identify starting trends.
The indicator consists of up and down lines, which
measure how long it has been since the highest
high/lowest low has occurred in the last
periods. Developed by Tushar Chande in 1995.
aroon(HL, n = 20)
Object that is coercible to xts or matrix and contains either a High-Low price series, or a Close price series.
Number of periods to use in the calculation.
Aroon up (down) is the elapsed time, expressed as a
percentage, between today and the highest (lowest) price
in the last
n periods. If today's price is a new
high (low) Aroon up (down) will be 100. Each subsequent
period without another new high (low) causes Aroon up
(down) to decrease by (1 /
n) x 100.
A object of the same class as
HL or a matrix (if
try.xts fails) containing the columns:
The Aroon up indicator.
The Aroon down indicator.
The Aroon oscillator (
aroonUp - aroonDn).
If High-Low prices are given, the function calculates the max/min using the high/low prices. Otherwise the function calculates the max/min of the single series.
Up (down) trends are indicated when the aroonUp(Dn) is between 70 and 100. Strong trends are indicated when when the aroonUp(Dn) is above 70 while the aroonDn(Up) is below 30. Also, crossovers may be useful.
The following site(s) were used to code/document this
for other indicators that measure trend
1 2 3