How It Trades
- Track how many bars have passed since the highest high and the lowest low of the last 25, and turn each into a 0-100 line: Aroon Up and Aroon Down.
- Buy when Aroon Up crosses above Aroon Down: the market is setting new highs more recently than new lows, so the trend has turned up in time terms even before price confirms it by size.
- Sell when Aroon Down crosses back above Aroon Up.
Example Strategy
Pine Script
Paste it into TradingView’s Pine Editor to run these rules on any chart.
//@version=6
// Aroon Crossover — sort.finance. Fills at the signal bar's close, 0.02% fee a side,
// whole account per trade, as the backtest. History and indicator warm-up
// differ from the site's, so expect close to the same trades, not identical.
strategy("Aroon Crossover", overlay=false,
initial_capital=100, default_qty_type=strategy.percent_of_equity,
default_qty_value=100, commission_type=strategy.commission.percent,
commission_value=0.02, process_orders_on_close=true, pyramiding=0)
// The bar the current position opened on, and the bar the last one closed on.
var int entryBar = na
var int exitBar = -1
// ── Signals ──────────────────────────────────────────────────────────────
aroonUp = 100 * (ta.highestbars(high, 26) + 25) / 25
aroonDown = 100 * (ta.lowestbars(low, 26) + 25) / 25
above = aroonUp > aroonDown
enterNow = above and not above[1]
exitNow = not above and above[1]
// ── Orders ───────────────────────────────────────────────────────────────
// Open on the first bar the entry holds while flat; close on the first
// later bar the exit holds; never reopen on the bar a position closed.
inTrade = strategy.position_size != 0
if inTrade and bar_index > entryBar and exitNow
strategy.close("Long")
exitBar := bar_index
else if not inTrade and bar_index > exitBar and enterNow
strategy.entry("Long", strategy.long)
entryBar := bar_index
// ── Drawing ──────────────────────────────────────────────────────────────
plot(aroonUp, "Aroon Up", color=#459b61)
plot(aroonDown, "Aroon Down", color=#b54a48)
hline(50, "Midpoint 50", color=color.new(#8a92a0, 40), linestyle=hline.style_dashed)