Aroon Up (14)

The Aroon Up (14) is a trend indicators indicator used in Skyrexio Strategy Builder for trend strength measurement and direction identification.

Introduction

Aroon Up is a bullish momentum indicator that measures how recently the highest high occurred within a lookback period. Aroon Up is primarily bullish - it provides LONG signals when values are high (near 100), indicating recent new highs and strong upward momentum. This indicator excels at identifying when markets are making consistent new highs and bullish trends are accelerating.

How Aroon Up (14) Works

Aroon Up was developed by Tushar Chande to measure how long it has been since the highest high within a specified period (14 periods). The calculation is: Aroon Up = ((n - periods since highest high) / n) × 100. Values range from 0 to 100, where 100 indicates a new high was just made, and 0 indicates the high occurred at the beginning of the lookback period.

Key characteristics of Aroon Up:

• Recency-based momentum - Measures how recently new highs were achieved • Bullish trend identification - High values indicate consistent new highs • Momentum acceleration detection - Values near 100 show strong upward momentum • Time-based analysis - Focuses on timing of highs rather than price levels • Trend strength measurement - Sustained high values indicate strong bullish trends

Market Psychology: Aroon Up reflects the market's ability to achieve new highs consistently. High Aroon Up values indicate strong bullish conviction with buyers continuously pushing prices to new levels. Low values suggest the upward momentum has stalled and buyers are losing control.

Key Characteristics

Attribute	Details
Category	Trend Indicators
Type	Bullish Momentum and Trend Strength
Primary Use	LONG entries and bullish trend confirmation
Timeframe	All timeframes supported (1m to 1M)
Confirmation	Aroon Down, volume, momentum indicators

Strategy Applications

🟢 LONG STRATEGY (Primary Use)

Aroon Up is primarily a LONG signal indicator. Use LONG entries when Aroon Up is high (>80), indicating recent new highs and strong bullish momentum. Best results when Aroon Up > Aroon Down.

Base Entry Order (LONG)

Trigger Type: Once per bar close
Bar TF: 1H
First Condition: Aroon Up (14)
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 80

Additional Entry Orders (LONG)

Additional Entry 1: Aroon Up dominance (bullish momentum)
First Condition: Aroon Up (14)
Timeframe: 1H
Operator: Greater Than
Second Condition: Aroon Down (14)
Timeframe: 1H

OR

Additional Entry 2: New high confirmation with volume
First Condition: Aroon Up (14)
Timeframe: 1H
Operator: Equal
Second Condition: Value
Value: 100

AND

First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Volume Weighted Moving Average
Timeframe: 1H

Take Profit Orders (LONG)

Rule 1: Exit condition - Aroon Up momentum weakening
First Condition: Aroon Up (14)
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 50

OR

Rule 2: Exit condition - Aroon Down gaining strength
First Condition: Aroon Down (14)
Timeframe: 1H
Operator: Greater Than
Second Condition: Aroon Up (14)
Timeframe: 1H

OR

Rule 3: Exit condition - Overbought with momentum divergence
First Condition: RSI
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 75

AND

First Condition: Aroon Up (14)
Timeframe: 1H
Operator: Less Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

Stop Loss Orders (LONG)

Rule 1: Stop loss - Aroon Up collapse
First Condition: Aroon Up (14)
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 30

OR

Rule 2: Stop loss - Bearish momentum dominance
First Condition: Aroon Down (14)
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 70

AND

First Condition: Aroon Up (14)
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 50

OR

Rule 3: Stop loss - Volume confirms breakdown
First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Volume Weighted Moving Average
Timeframe: 1H

AND

First Condition: Aroon Up (14)
Timeframe: 1H
Operator: Less Than
Second Condition: Aroon Down (14)
Timeframe: 1H

🔴 SHORT STRATEGY (Secondary Use)

Aroon Up is not naturally suited for SHORT strategies as it measures bullish momentum. Use SHORT entries only when Aroon Up is very low (<20), indicating no recent highs and weak bullish momentum.

Base Entry Order (SHORT) - Weak bullish momentum

Trigger Type: Once per bar close
Bar TF: 1H
First Condition: Aroon Up (14)
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 20

AND

First Condition: Aroon Down (14)
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 80

Take Profit Orders (SHORT) - Exit existing positions

Rule 1: Exit condition - Aroon Up recovery
First Condition: Aroon Up (14)
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 50

OR

Rule 2: Exit condition - New high achieved
First Condition: Aroon Up (14)
Timeframe: 1H
Operator: Equal
Second Condition: Value
Value: 100

OR

Rule 3: Exit condition - Oversold bounce potential
First Condition: RSI
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 25

Stop Loss Orders (SHORT) - Protect existing positions

Rule 1: Stop loss - Strong bullish momentum confirmed
First Condition: Aroon Up (14)
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 80

OR

Rule 2: Stop loss - Aroon Up dominance
First Condition: Aroon Up (14)
Timeframe: 1H
Operator: Greater Than
Second Condition: Aroon Down (14)
Timeframe: 1H

OR

Rule 3: Stop loss - Volume confirms bullish breakout
First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Volume Weighted Moving Average
Timeframe: 1H

AND

First Condition: Aroon Up (14)
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 70

Advanced Strategy Combinations

Multi-Timeframe Aroon Up Analysis

Setup

Higher Timeframe Confirmation:

• Daily: Aroon Up > 80 (consistent new highs)

• 4H: Aroon Up > Aroon Down (bullish momentum)

• 1H: Aroon Up execution signals + volume confirmation

Execution

LONG: Daily/4H Aroon Up strength + 1H Aroon Up >80 Scaling: Aroon Up reaching 100 (new highs) Exit: Aroon Up falling below 50 or Aroon Down dominance

Aroon Crossover Strategy

Setup Process:

1. Identify Aroon Up crossing above Aroon Down

2. Confirm with Aroon Up > 50 (bullish momentum)

3. Wait for volume confirmation

4. Enter on momentum continuation or pullback

Execution:

• Base Order: Aroon Up > Aroon Down + momentum confirmation

• Additional: Aroon Up reaching high levels (>80)

• Take Profit: Aroon momentum divergence or crossover reversal

• Stop Loss: Aroon Down dominance or Up collapse

Risk Management Guidelines

Position Sizing

Strategy Type	Position Size	Conditions
LONG Strategy	Standard	Aroon Up > 80 with volume confirmation
SHORT Strategy	Reduced (25-50%)	Aroon Up < 20, use bearish confirmations
High Aroon Up	Increase confidence	Aroon Up = 100 (new highs)
Low Aroon Up	Reduce size	Aroon Up < 30 (weak momentum)

Aroon Up Reliability Factors

High Reliability

✅ Aroon Up > 80 consistently ✅ Aroon Up > Aroon Down clearly ✅ Volume confirms new highs ✅ Multi-timeframe alignment

Low Reliability

❌ Aroon Up oscillating around 50 ❌ Aroon Up close to Aroon Down ❌ Low volume on new highs ❌ Conflicting momentum indicators

Best Practices

For LONG Strategies

1. Wait for Aroon Up > 80 - Confirm recent new highs before entering

2. Aroon Up dominance - Ensure Aroon Up > Aroon Down for bullish bias

3. Volume confirmation - Validate new highs with volume support

4. Sustained strength - Prefer consistent high Aroon Up values

For SHORT Strategies

1. Very low Aroon Up only - Only consider SHORT when Aroon Up < 20

2. Strong bearish confirmation - Require Aroon Down > 80 for SHORT entries

3. Quick exits - Take profits fast when Aroon Up shows any recovery

4. Tight stops - Use close stops due to counter-trend nature

Common Mistakes to Avoid

• Ignoring Aroon Down - Using Aroon Up without comparing to Aroon Down

• Fighting strong Aroon Up - Going SHORT when Aroon Up shows consistent strength

• No volume confirmation - Trading Aroon Up signals without volume support

• Premature entries - Entering before Aroon Up reaches significant levels

Market Conditions Analysis

Market Type	LONG Strategy Effectiveness	SHORT Strategy Effectiveness
Strong Uptrend	🟢 High (Aroon Up > 80)	🔴 Very Low (against momentum)
Weak Uptrend	🟡 Medium (Aroon Up 50-80)	🟡 Medium (if Aroon Up very low)
Ranging	🟡 Medium (Aroon oscillating)	🟡 Medium (mean reversion)
Downtrend	🔴 Low (Aroon Up < 50)	🟢 High (low Aroon Up confirms bears)
Breakout Markets	🟢 Very High (Aroon Up = 100)	🔴 Very Low (new highs)

Related Indicators

Indicator	Relationship	Link
Aroon Down	Opposite bearish measurement	Aroon Down (14)
Aroon Oscillator	Combined Aroon Up/Down	Aroon Oscillator (14)
ADX	Trend strength confirmation	Average Directional Index (14)
RSI	Momentum confirmation	RSI (14)

Conclusion

Aroon Up is a bullish momentum indicator that excels at identifying when markets are making consistent new highs. Its primary value lies in confirming bullish trends and providing LONG entry signals based on the recency of new highs.

Key Takeaways

• PRIMARY USE: LONG entries when Aroon Up > 80 (recent new highs)

• SECONDARY USE: Bullish momentum confirmation and trend strength measurement

• ALWAYS: Compare Aroon Up to Aroon Down for directional bias

• REMEMBER: Aroon Up measures bullish momentum - use bearish indicators for SHORT strategies

Success with Aroon Up requires understanding its focus on the recency of new highs rather than price levels. Use it primarily for LONG strategies and always confirm with volume and complementary indicators.

Ready to Build Your Own Strategy?

Try our free AI-powered Strategy Builder at app.skyrexio.com and start creating professional trading strategies today. No coding required!