The Aroon indicator provides a measure of how many periods have passed since a new high or low has been set

The Aroon Up indicator displays the strength of the upward trend and the Aroon Down displays the strength of the downward trend

When the Aroon Up is above 70 it is considered a bullish signal as the price is consistently forming new highs

When it stops forming new highs, as each period passes the value of the Aroon Up reduces, until it reaches zero

When Aroon Up is below 30, it is considered a bearish signal as the price is consistently forming lower highs

When the Aroon Down is above 70 it is considered a bearish signal as the price is consistently forming new lows

When it stops forming new lows, as each period passes the value of the Aroon Down reduces, until it reaches zero

When Aroon Down is below 30, it is considered a bullish signal as the price is consistently forming higher lows

The two indicators are commonly combined, whereby if the price is forming lower lows and lower highs, the Aroon Up will be below 30 and the Aroon Down will be above 70, which is considered a strong bearish trend signal

When the Aroon Up falls below the Aroon Down, it can signal the start of a bearish trend

During a bullish trend, the price will form higher highs and higher lows

This will result in the Aroon Up rising above 70 and the Aroon Down falling below 30, indicating a strong bullish move

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