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How Aroon indicator detect if a stock is trending or not

Aroon is a technical indicator to detect if a stock is trending or not. Its also can be use to measure the strength of the trend. Aroon is designed to detect te beginning of a new trend. There is two type of Aroon, Aroon Up and Aroon Down.

Arron is calculate based on the following formula:

Aroon-Up = ((25 - Days Since 25-day High)/25) x 100
Aroon-Down = ((25 - Days Since 25-day Low)/25) x 100

It is easy to interprate Arron, it is a buying signal when Aroon up and above 50 and Aroon down is below 50. It is also selling signal when Aroon Up is below 50 and Aroon Below is above 50. A surge to 100 is sign that the new trend may emerging.

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