Aroon is a Sanskrit word meaning dawn’s early light or the change from night to day. The Aroon Indicator was developed by Tushar Chande in the mid 1990’s. Aroon is a trend indicator, used to determine whether a security is moving in a trend or a range, and also to guage the strength of the trend. The Aroon Oscillator signals an upward trend when it rises above the zero line and a downward trend when it falls below zero. The farther away the oscillator is from the zero line, the stronger the trend.
Chart courtesy of Prophet Financial Systems