Aroon Impulse Histogram for Trend Direction and Strength

Summary

This indicator turns Aroon Up and Aroon Down readings into a color-coded histogram. Using a 14-period lookback and a trigger level of 70, it marks a bullish state when Aroon Up exceeds Aroon Down and reaches the trigger, and a bearish state when Aroon Down leads and reaches it. When neither condition holds, the default color is yellow. The plotted bars have a constant height, so the display communicates the qualifying direction through color rather than showing the magnitude of the Aroon readings.

Aroon values reflect how recently the highest high or lowest low occurred within the lookback period, making the comparison a way to visualize trend direction and persistence. The document explains the indicator’s logic and gives its settings, but offers no performance results or trading rules for entries, exits, or risk control. The trigger is a configurable design choice, and the histogram should be interpreted as a visual trend filter rather than a tested standalone strategy.

Key ideas

• Aroon Up and Aroon Down compare the recency of period highs and lows.
• The indicator uses a 14-period lookback and a trigger level of 70.
• A green bar signals qualifying Aroon Up leadership, while red signals qualifying Aroon Down leadership.
• The histogram uses fixed-height bars, so color communicates direction rather than signal strength.
• The document does not provide strategy rules or evidence of profitability.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.