Aroon Horn: Filtering Trend Direction with Aroon Values
Summary
Aroon Horn is described as a trend-direction indicator built from the Aroon indicator. It aims to filter minor price fluctuations and displays bullish, bearish, and filtered or neutral readings with different colors. The user can adjust the calculation period and a filter-size parameter.
The calculation scales the difference between Aroon Up and Aroon Down by the period. Those component values depend on how recently the highest high and lowest low occurred within the lookback range. The document provides the formula and variable meanings, but no trading rules, parameter guidance, examples, or performance evidence. It therefore explains how the indicator is constructed and interpreted at a high level, not whether it predicts returns or improves a strategy. Its output should be evaluated in the context of a specific market and tested before being used for trading decisions.
Key ideas
- Aroon Horn derives its trend reading from the difference between Aroon Up and Aroon Down.
- The calculation scales that difference by the selected lookback period.
- Recent high and low locations within the period determine the two Aroon component values.
- The indicator uses colors to distinguish bullish, bearish, and filtered readings.
- The document gives no evidence about profitability or suitable parameter settings.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.