| Equity Based Analysis > Technical Analysis > Indicators > Aroon Oscillator (AO) |
The Aroon Oscillator is based on the Aroon Indicator. It measures the strength of the trend.
Oscillator is calculated by subtracting Aroon Down from Aroon Up. Readings above zero indicate that an uptrend is present, while readings below zero indicate that a downtrend is present. Readings near zero suggest that a security may be trending sideways and that this period of consolidation could continue.
The Aroon indicator is developed by Tushar S. Chande and is first published in September,1995 issue of the “Technical Analysis of Stocks & Commodities” magazine.
Calculation:
AO = Aroon Up – Aroon Down
Aroon Up = The upper band value of Aroon Indicator
Aroon Down = The lower band value of Aroon Indicator
Inputs:
Period = 14
Indicates time period(the number of days for daily analysis, the number of weeks for weekly analysis, etc.).
Indicator Type: Trend