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Aroon Indicator Meaning

The Aroon Indicator is a technical analysis tool used to identify trend direction, trend strength, and potential reversals. It consists of two components:

Both values oscillate between 0 and 100.

When Aroon-Up is high and Aroon-Down is low, an uptrend may be strengthening. Conversely, if Aroon-Down is high and Aroon-Up is low, a downtrend may be dominant.

The formulas are:

Unlike momentum oscillators that focus solely on price or velocity, the Aroon Indicator emphasizes time elapsed since significant highs or lows, offering an alternative view on whether trends persist or weaken.

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