TREND STRENGTH INDICATOR
Aroon
Measures how recently a lookback's highest high and lowest low occurred.
Start with the input, not the story.
Recency of new extremes rather than the size of price change.
Plain-language formula
Aroon Up/Down scale the periods since the highest high or lowest low to 0-100.
Platform implementations can differ in price input, smoothing, indexing and rounding. Record the exact settings and provider before comparing results.
03 / USEFUL REGIME
Where it may help
Trend emergence and consolidation research.
04 / WEAK REGIME
Where it struggles
Short lookbacks and assets repeatedly touching the same extreme.
Add a different measurement.
ATRDonchian Channel
A complementary tool should answer a different question, such as volatility, regime or position risk. Test the base rule before testing the combination.
The shortcut to avoid
Interpreting a cross without controlling the prior regime.
A testable next step
Compare cross rules with simple Donchian breakouts to test incremental value.