Developed by Tushar Chande in 1995, Aroon is an indicator system that can be used to determine whether a stock is trending or not and how strong the trend is. "Aroon" means "Dawn's Early Light" in Sanskrit and Chande chose that name for this indicator since it is designed to reveal the beginning of a new trend.
The Aroon indicator system consists of two lines, 'Aroon (up)' and 'Aroon (down)'. It takes a single parameter which is the number of time periods to use in the calculation. Aroon (up) is the amount of time (on a percentage basis) that has elapsed between the start of the time period and the point at which the highest price during that time period occurred. Aroon (down) is calculated in just the opposite manner, looking for new lows instead of new highs.