The Aroon indicator is an oscillator view of how long ago the new high or low price occurred. It can help indicate if a price is in a trading range or trending.
AroonUp shows how long it has been since a new high was achieved within the specified period.
AroonDown shows how long it has been since a new low was achieved within the specified period.
The Excel formula for calculating Aroon is:
=EPF.TA.Aroon(closePrices, highPrices, lowPrices, datesTimes, lookbackPeriods)
The input parameters required are:
|Close Prices||An Excel range of the close prices.|
|High Prices||An Excel range of the high prices.|
|Low Prices||An Excel range of the low prices.|
|Lookback Periods||The number of periods in the lookback window.|
The range of prices and dates must correspond and be of the same length, for example the first date in the date range must correspond to the first price in the price range.
The output columns are:
|AroonUp||Based on the last High price.|
|AroonDown||Based on the last Low price.|
|Oscillator||AroonUp - AroonDown.|
|Date||The date that the average true range corresponds to.|