Developed by Tushar Chande in 1995, "Aroon" is a Sanskrit word meaning "Dawn’s Early Light". Unlike momentum oscillators that track price velocity, Aroon measures the number of periods since a stock reached its recent high or low within a specific timeframe (usually 25 periods).
It consists of two distinct lines:
Aroon Up: Measures the strength of the bullish trend by tracking how recently a new high was made.
Aroon Down: Measures the strength of the bearish trend by tracking how recently a new low was made.
When a line is near 100, it means a new high or low was recorded very recently, signaling a powerful trend.