The Arron Oscillator is used for finding trends in prices. It’s constructed using two inputs:
The Aroon Oscillator is simply the difference between the Aroon Up and the Aroon Down. The set period is 14 days by default, but this can be adjusted in the Aroon Oscillator settings modal.
The Aroon Oscillator swings between values of -100 and 100 (0 being the middle line). When the Oscillator is in positive (or negative) territory, this hints towards an uptrend (or downtrend). The Oscillator would move closer towards 100 (or -100) as the upward (or downward) trend becomes stronger. When the Oscillator is closer to 0, this suggests the stock is going through a period of price consolidation.