The Aroon Indicator evaluates the percentage number of days since the recent 25 day high and low. This makes the Aroon Indicator an oscillator which oscillates between 0 – 100.
A buy is generated when –
1) The % from last 25 days high is greater than 50%
2) The % from last 25 days low is lesser than 50%
A sell is generated when the previous candle’s –
1)The % from last 25 days high is less than 50%
2) The % from last 25 days low is greater than 50%
Additional notesAroonUP and AroonDown are predefined functions in Tradescript.
The numbers placed in the code are as per the definition of the indicator.