This indicator also helps to know the changing momentum of the market trend it shows the momentum changings with the help of trend lines. With the numerical comments, this indicator plots two horizontal lines of the previous daily range. This indicator only shows the price on the market trend in numerical form. Like when the average daily range is trending above the daily price range then it means that the volatility in the market is rising and when the ADR is trending below the price range then it means that the volatility in the market trend is decreasing.Īverage daily range (ADR) indicator calculates the best intraday reversals in the market trend. It uses some specific strategies for its easy understanding. It is used to show the difference between the lowest price point of the day and the highest point of the day.Īverage daily range (ADR) indicator is specially designed for Forex trading system.
This indicator is used for daily trade only. This indicator is also used to show the movement of the pips of currency pairs in the indicator chart. It also tells how much volatility comes with that price changings. EXPLANATION of average daily range (ADR) indicator:-Īverage daily range (ADR) indicator is an indicator that is based on off-price, it means that this indicator only hints and you have to understand this hindsight to detect the price changings in the market trend. Knowing volatility is a good and positive point for the traders. It is also used to detect the volatility in the market trend. It is not an automatic indicator, it just plots the data on the indicator chart and traders have to notice the changings in the indictor chart and they have to understand these trends for a better trade.
It is also used to detect the momentum in the market trend. This indicator gives better results when used with Bollinger bands indicator and stochastic oscillator or with relative strength indicator. It is a custom indicator used to display daily average range for price over a specific period. It is used to detect the average range of market trends. The average daily range indicator is an indicator also known as ADR indicator.
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