The Normalized Average Daily Range (ADR) indicator is a technical analysis tool that measures the average price range of a security over a specific period. It is calculated by dividing the ADR by the stock price to normalize the indicator across different securities. The Normalized ADR can be used to compare the average price range between different stocks, which can help traders identify which stocks are more volatile and may offer greater trading opportunities. When the Normalized ADR value is high, the stock's price is experiencing more significant price swings, while low values suggest the opposite. The Normalized ADR can be used to set profit targets, stop loss levels, and determine a trade's overall risk.
