Most trend indicators tell you what the trend is right now. The Aroon indicator asks a different question: is a new trend about to begin? Developed by Tushar Chande in 1995, the Aroon measures how much time has passed since price made its highest high or lowest low within a lookback period. The name comes from the Sanskrit word for “dawn’s early light,” which perfectly captures its purpose – detecting trends at their very beginning, before they’re obvious to everyone else.
This unique time-based approach gives the Aroon an edge that price-based indicators like moving averages and the ADX simply cannot replicate. In this review, I’ll cover how it works on MT4, the best settings for different trading styles, and a strategy that takes advantage of its early trend detection.
What is the Aroon Indicator?
The Aroon indicator consists of two lines that oscillate between 0 and 100:
Aroon Up measures the number of periods since the highest high within the lookback period. The formula is:
Aroon Up = ((Period – Periods since highest high) / Period) x 100
Aroon Down measures the number of periods since the lowest low:
Aroon Down = ((Period – Periods since lowest low) / Period) x 100
With a standard 14-period setting, if the highest high occurred on the current bar, Aroon Up reads 100. If the highest high was 14 bars ago, Aroon Up reads 0. The same logic applies to Aroon Down with the lowest low.
Tushar Chande designed the indicator specifically to answer two questions that other trend tools handle poorly: when is a new trend starting, and when is the current trend losing steam? A Moving Average tells you the trend direction but lags behind. The ADX tells you trend strength but doesn’t indicate direction. The Aroon does both – and it does them earlier than most alternatives.
The Aroon is not built into MetaTrader 4 by default. You’ll need to install it as a custom indicator, which takes about three minutes. The free download link is at the bottom of this page.
How the Aroon Indicator Works on MT4
Unlike moving averages that overlay on your price chart, the Aroon displays in a separate indicator window below the chart with two lines: Aroon Up (typically green) and Aroon Down (typically red). Both lines move between 0 and 100.
Here’s how to read the signals:
Strong uptrend: Aroon Up stays above 70 (ideally near 100) while Aroon Down stays below 30. This means price is consistently making new highs and hasn’t made a new low recently.
Strong downtrend: Aroon Down stays above 70 while Aroon Up stays below 30. Price is making new lows while highs are stale.
Consolidation/range: Both lines hover around the 50 level, or they cross each other frequently without either one sustaining a position above 70. The market isn’t committing to a direction.
New trend forming: When Aroon Up crosses above Aroon Down from below, it signals the potential start of a bullish trend. When Aroon Down crosses above Aroon Up, a bearish trend may be beginning. The earlier you catch these crossovers, the better your entry price.
The 70 and 30 levels serve as your key thresholds. Aroon Up above 70 with Aroon Down below 30 is a high-conviction uptrend signal. Anything in between is a gray zone that requires additional confirmation from tools like the RSI or price action patterns.
Key Features
- Non-repainting: Aroon values for closed candles never change
- Dual-line system (Aroon Up and Aroon Down) shows both trend direction and emerging reversals
- Time-based measurement provides a fundamentally different perspective than price-based indicators
- 0-100 bounded scale makes readings easy to interpret at a glance
- Identifies new trends earlier than most lagging indicators
- Customizable lookback period for different trading timeframes
Best Settings for Aroon Indicator
The default period of 14 works well for most applications, but here’s how to optimize for your trading style:
| Parameter | Scalping (M1-M5) | Day Trading (M15-H1) | Swing Trading (H4-D1) |
|---|---|---|---|
| Aroon Period | 10 | 14 | 25 |
| Upper Threshold | 70 | 70 | 80 |
| Lower Threshold | 30 | 30 | 20 |
| Best Pairs | EUR/USD, GBP/USD | Majors and crosses | Any trending pair |
Shorter periods (10) make the Aroon more sensitive and generate faster crossovers, which suits scalping but increases false signals. Longer periods (25) slow things down and filter out noise, better for swing trading where you want high-conviction entries.
Recommended starting point: Use a 14-period Aroon on the H1 chart with the 70/30 threshold levels. This is the most widely tested configuration and provides a balanced signal frequency for day traders.
Pros and Cons
| Pros | Cons |
|---|---|
| Detects new trends earlier than most lagging indicators | Not built into MT4 – requires custom indicator installation |
| Time-based approach provides unique insight that price-based tools miss | Can generate false signals in choppy, range-bound markets |
| Clear 0-100 scale makes readings unambiguous | Two-line display requires more screen space than a single-line indicator |
| Identifies both trend formation and trend exhaustion | Less effective as a standalone tool – works best with confirmation |
How to Install Aroon Indicator on MT4
The Aroon indicator must be installed as a custom indicator in MT4. Here’s the process:
Step 1: Download the Aroon .ex4 file from the download section at the bottom of this page.
Step 2: Open your MT4 terminal and click File > Open Data Folder from the top menu.
Step 3: Navigate to MQL4 > Indicators and paste the downloaded Aroon .ex4 file into this folder.
Step 4: Restart MT4, or right-click the Navigator panel and select Refresh.
Step 5: In the Navigator panel, expand Custom Indicators, locate Aroon, and drag it onto your chart. Set the period (14 is the default) and click OK. The indicator will appear in a separate window below your price chart with two lines.
For the full installation walkthrough, see our guide on how to install custom indicators on MT4.
Trading Strategy Using Aroon Indicator
This strategy combines the Aroon’s early trend detection with price action confirmation. It works best on H1 and H4 timeframes on trending major pairs.
Setup: Apply the Aroon indicator with a 14-period setting. Add a 50-period EMA to the price chart as a trend context filter.
Buy Signal:
1. Aroon Up crosses above Aroon Down
2. Aroon Up rises above 70 (confirming new highs are being made consistently)
3. Price is trading above the 50 EMA (overall trend context is bullish)
4. Enter long on the first candle that closes bullish after all three conditions align
Sell Signal:
1. Aroon Down crosses above Aroon Up
2. Aroon Down rises above 70 (confirming new lows are being made consistently)
3. Price is trading below the 50 EMA (overall trend context is bearish)
4. Enter short on the first candle that closes bearish after all three conditions align
Stop Loss: Place the stop at the most recent swing high (for shorts) or swing low (for longs) before the Aroon crossover occurred.
Take Profit: Exit when Aroon Up drops below 50 (for longs) or Aroon Down drops below 50 (for shorts), indicating the trend is losing momentum. Alternatively, target a 1.5:1 risk-reward ratio.
The 50 EMA filter is critical here. Without it, the Aroon will give you crossover signals during minor pullbacks within a larger trend, and you’d end up trading against the dominant direction. The EMA keeps you on the right side of the bigger picture while the Aroon times your entries within that trend.
Aroon vs ADX
Both indicators measure trend characteristics, but they approach the problem differently:
| Feature | Aroon | ADX |
|---|---|---|
| What It Measures | Time since highest high / lowest low | Trend strength (directionless) |
| Lines | Aroon Up + Aroon Down (direction + timing) | ADX line + optional DI+ and DI- |
| Scale | 0-100 (each line) | 0-100 |
| Best For | Detecting when new trends begin | Confirming whether a trend exists and how strong it is |
| Direction | Yes – Aroon Up vs Down shows bullish/bearish | Only with DI+ and DI- lines enabled |
| Lag | Low – catches trend starts early | Moderate – confirms trends already in motion |
| Built into MT4 | No | Yes |
Verdict: The Aroon is better for catching trends early at their formation stage. The ADX is better for confirming that an existing trend has real strength behind it. Ideally, use the Aroon for entry timing and the ADX for trade management. If the Aroon signals a new uptrend and the ADX rises above 25 confirming trend strength, you have a high-probability setup.
Frequently Asked Questions
Is the Aroon indicator free for MT4?
Yes. The Aroon indicator is available as a free custom indicator download for MT4. It is not built into MetaTrader 4 by default, so you need to download and install the .ex4 file manually. You can download it from the link at the bottom of this page.
Does the Aroon indicator repaint?
No. Once a candle closes, the Aroon Up and Aroon Down values for that bar are fixed permanently. The indicator only updates on the current unclosed candle, which is standard behavior for any time-based calculation.
What does the Aroon indicator measure?
The Aroon indicator measures the number of periods since the highest high (Aroon Up) and the lowest low (Aroon Down) within a given lookback period. Values are expressed on a 0-100 scale. When Aroon Up is near 100, a new uptrend is likely forming. When Aroon Down is near 100, a new downtrend is likely forming.
What is the best Aroon period for day trading?
For day trading on M15 to H1 timeframes, a 14-period Aroon setting works well as the default. Some traders reduce this to 10 for faster signals on M15 charts. For swing trading on H4 and Daily, a 25-period setting provides more reliable signals with fewer false crossovers.
Can I use Aroon on MT5?
Yes. The Aroon indicator can be used on MT5 via a custom indicator file, similar to MT4. Some MT5 builds may include it in the standard indicator set. The calculation and interpretation are identical across both platforms.
Download Aroon Indicator for MT4 – Free
Our Aroon custom indicator includes features tailored for forex trading:
- Aroon Up and Aroon Down lines with customizable colors for clear visual separation
- Crossover alerts – popup, email, and push notifications when Aroon lines cross
- Threshold alerts – notifications when either line crosses above 70 or below 30
- Adjustable period – customize the lookback window for any timeframe and strategy
Platform: MT4 (Build 1000+)
File type: .ex4
File size: 10 KB
Version: 1.4
Last updated: March 2026
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Overall Rating: 4.3/5
| Category | Rating |
|---|---|
| Accuracy | 4.4/5 |
| Ease of Use | 4.0/5 |
| Features | 4.2/5 |
| Value | 4.8/5 |
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