Aroon Indicator
An indicator system that identifies when a new trend is beginning and the strength of the trend.
Usage
Use to identify when a security is trending and when it is in a range-bound period. Aroon Up crossing above Aroon Down signals the start of a new uptrend.
Background
Developed by Tushar Chande in 1995, the Aroon indicator focuses on the time between highs and the time between lows over a given period. The idea is that strong uptrends will regularly see new highs, and strong downtrends will regularly see new lows. — StockCharts ChartSchool
Parameters
timeperiod(default: 25): Lookback period
Formula
[ \text{Aroon Up} = \frac{n - \text{Periods since n-period High}}{n} \times 100 ]