15 — Trend & Momentum

Aroon#

✓ Mathematical
◆ The PatternAroon Up = ((25 − periods since 25-period high) / 25) × 100.

The Aroon Indicator — Tushar Chande (1995). "Aroon" means "dawn" in Sanskrit.

Aroon Up = ((25 − periods since 25-day high) / 25) × 100
Aroon Down = ((25 − periods since 25-day low) / 25) × 100
Interpretation:
• Aroon Up > 70, Down < 30 → strong uptrend
• Aroon Down > 70, Up < 30 → strong downtrend
• Both below 50 → consolidation
• Crossovers signal trend changes
Pattern bridge: Time since highest high vs. lowest low measures where you are in a cycle. The same temporal awareness drives RNN hidden states.
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