Aroon Oscillator Indicates 3 Strong New Uptrends

One popular metric that technical analysts use to find new trends and measure the strength of those trends is the Aroon Oscillator.

The Aroon Oscillator was developed in the 1990’s by Tushar Chande. Typically, metrics called Aroon-Up and Aroon-Down are calculated based on a 25-day trading period. Aroon-Up is calculated using the following formula:

Aroon-Up=100*(25-(#of days since 25-day high))/25

Aroon down is calculated based on a similar formula.

The Aroon Oscillator is the difference between Aroon-Up and Aroon-Down and ranges from -100 to +100. A positive value represents an uptrend for the stock, and the higher the value, the stronger the trend. Therefore, a switch from positive to negative represents a new uptrend, and the closer the oscillator is to +100, the stronger the new trend should be.
 

Related Link: Timing The Market Is Harder Than It Looks: Invest For The Long-Term
 

Here are three stocks with relatively strong new uptrends, according to Aroon Oscillator.

Burlington Stores Inc BURL

Not only did Burlington’s Aroon Oscillator just flip from negative to positive, it’s now at its highest level since the beginning of October.

Spectra Energy Corp. SE

Spectra’s Aroon Oscillator just flipped from negative to positive and is now sitting at a new six-month high of 84, signaling the beginning of a strong uptrend.

Hanesbrands Inc. HBI

Hanesbrands Aroon Oscillator also just flipped from negative to positive and has reached its highest level since September.

Disclosure: the author holds no position in the stocks mentioned.