| The Average Daily Range indicator (ADR) calculates the average daily high-to-low distances. It shows how much the price of an asset moves per day on average, and it is very similar to the Average True Range (ATR) indicator, with the difference that it does not consider any gaps with the previous day's closing price. The ADR indicator measures volatility and shows whether the price movement is out of the norm. For example, if an asset rallying during a trading session significantly exceeds its average daily range, further move in this direction is unlikely. This scenario suggests opening a position in the opposite direction and closing trading positions previously opened in the order of movement. |
