The Aroon Oscillator is derived from the Aroon Indicator and represents the difference between the Aroon Up and Down lines. With Aroon values ranging between 0 and +100, the Aroon Oscillator oscillates between -100 and +100, with zero serving as the central crossover point.
When AroonUp exceeds AroonDown, it may suggest a bullish trend, and the reverse may hint at a bearish stance. The magnitude of the oscillator's value may provide insights into the strength and direction of the trend.
AroonOscillator: The main oscillating line that quantifies the difference between the Aroon Up and Aroon Down indicators.
Overbought: A horizontal line set at a default level of 50, indicating overbought conditions and potential trend exhaustion.
Midline: A horizontal line at zero that serves as a neutral point for the oscillator.
Oversold: A horizontal line set at a default level of -50, indicating oversold conditions and potential for a trend reversal.
Parameters:
Length: Default set at 25 periods for Aroon calculation. Adjusting this value alters the period over which highs and lows are compared.
Overbought: Default threshold set at 50. Changing this value modifies the level indicating overbought conditions.
Oversold: Default threshold set at -50. Changing this value modifies the level indicating oversold conditions.
Aroon Oscillator Indicator subgraph on chart
*Please note that these observations are for informational purposes and should not be construed as financial advice.