The Aroon indicator helps traders identify the beginning of a new trend and the strength of an existing trend in the market. It shows how recently the highest high or lowest low occurred in a given period. This helps traders understand if the market is trending upward, downward, or moving sideways.

What is the Aroon Indicator?

The Aroon indicator is a technical analysis tool used to find the start of a new trend. It consists of two lines—Aroon Up and Aroon Down. Aroon Up measures how many days since the last high, and Aroon Down measures how many days since the last low. The values range between 0 and 100. A high Aroon Up value signals an uptrend, and a high Aroon Down value shows a downtrend.

How Does Aroon Identify a New Trend?

A new trend is identified when either Aroon Up or Aroon Down crosses above 70 or 80. If Aroon Up is high and Aroon Down is low, it signals a strong upward trend. If Aroon Down is high and Aroon Up is low, it signals a strong downward trend. When both lines are near 50, the market is moving sideways without a clear trend.

What Do Aroon Values Mean?

- Aroon Up above 70: Strong uptrend
- Aroon Down above 70: Strong downtrend
- Both lines below 50: No clear trend

Traders use these values to decide whether to buy, sell, or wait. A high Aroon Up with a low Aroon Down means the price is making recent highs and may continue upward.

When Should You Use the Aroon Indicator?

Use the Aroon indicator when you want to find out if a trend is just beginning or losing strength. It works well for short-term and long-term trading. You can also use it to avoid trading in sideways markets where there is no clear direction. It helps you stay with strong trends and avoid weak ones.

Can Aroon Be Used with Other Indicators?

Yes, the Aroon indicator works well with other technical tools like RSI, MACD, and Moving Averages. While Aroon shows the strength and freshness of a trend, other indicators help confirm entry and exit points. Combining them gives more reliable signals for traders in stocks, forex, and commodities.

Does Aroon Work in Indian Stock Markets?

Yes, the Aroon indicator is widely used by Indian traders in stocks like Reliance, TCS, Infosys, and in indices like Nifty and Bank Nifty. It helps identify trends early and make better trading decisions. Whether you're a beginner or an experienced trader, Aroon can help improve your trend analysis.