when aroon up remains high from consecutive new highs the oscillator value will be high following the uptrend when a security s price is on a downtrend with many new lows the aroon down value will be higher resulting in a lower oscillator value 
the aroon oscillator line can be included with or without the aroon up and aroon down when viewing a chart significant changes in the direction of the aroon oscillator can help to identify a new trend aroon oscillator formula and calculationthe formula for the aroon oscillator is aroon oscillator aroon up aroon downaroon up 100 25 periods since 25 period high 25aroon down 100 25 periods since 25 period low 25 begin aligned text aroon oscillator text aroon up text aroon down text aroon up 100 frac left 25 text periods since 25 period high right 25 text aroon down 100 frac left 25 text periods since 25 period low right 25 end aligned aroon oscillator aroon up aroon downaroon up 100 25 25 periods since 25 period high aroon down 100 25 25 periods since 25 period low to calculate the aroon oscillator aroon oscillator differs from the rate of change roc indicator in that the former is tracking whether a 25 period high or low occurred more recently while the latter tracks the momentum by looking at highs and lows and how far the current price has moved relative to a price in the past aroon oscillator trade signalsthe aroon oscillator can generate trade signals or provide insight into the current trend direction of an asset 