The average daily range indicator is an indicator also known as ADR indicator. It is used to detect the average range of market trends. It is a custom indicator used to display daily average range for price over a specific period. This indicator gives better results when used with Bollinger bands indicator and stochastic oscillator or with relative strength indicator. It is also used to detect the momentum in the market trend.
Average Daily Range ADR Indicator
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 volatility in the market trend. Knowing volatility is a good and positive point for the traders.
EXPLANATION of average daily range (ADR) indicator:-
Average 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. It also tells how much volatility comes with that price changings.
This indicator is also used to show the movement of the pips of currency pairs in the indicator chart. This indicator is used for daily trade only. It is used to show the difference between the lowest price point of the day and the highest point of the day.
Average daily range (ADR) indicator is specially designed for Forex trading system. It uses some specific strategies for its easy understanding. 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.
Average daily range (ADR) indicator calculates the best intraday reversals in the market trend. This indicator only shows the price on the market trend in numerical form. With the numerical comments, this indicator plots two horizontal lines of the previous daily range.
This indicator also helps to know the changing momentum of the market trend; it shows the momentum changings with the help of trend lines. If the market trend is rising it means that the volatility and the momentum are also increasing and if the market trends are decreasing it means that the volatility and the momentum both are also decreasing.
The ADR indicator has the following settings on the dashboard which helps to understand the indicator’s changings easily:
- Time zone of data
- Time zone of session
- ATR period
- Line style
- Line thickness 1
- Line colour 1
- Line thickness 2
- Line colour 2
- Debug logger
- The vertical Lines
- The Horizontal lines
USES OF ADR INDICATOR:
The ADR indicator has too many uses. This indicator is used to detect the momentum and volatility changings in the market trend.It is used for Meta trader platforms. It predicts the volatility and momentum with the help of price changings in the market trend.
It also uses different settings for its precise calculation. It also detects the intraday reversals in the market trend.it gives the positive volatility results which help the traders to make a healthy and profitable trade.
• Average daily range (ADR) indicator is used to indicate strength trend in the trade.
• Its calculations are based on moving average price.
• It is used to differentiate between trending and non-trending conditions.
• It helps to identify profitable trade.
• From the rise and fall of lines in the ASC Trend Indicator graph, the traders sense the price climax.
HOW TO INSTALL Average daily range (ADR) indicator:
• First step: – Download the Average daily range (ADR) indicator for Meta Trader 4 plateform.
• Second step: -Copy Average daily range (ADR) indicator for Meta Trader 4. mql4 to your Meta trader Directory/experts/indicators/
• Start or restart your Meta trader 4 Client.
• Select Chart and Timeframe where you want to test your MT4 indicators.
• Search “Custom Indicators” in your Navigator mostly left in your Meta trader 4 Client.
• Right-click on Average daily range (ADR) indicator for Meta Trader 4.mq4.
• Attach to a Chart
• Modify settings or press ok
• In the end, the Average daily range (ADR) indicator for Meta Trader 4.mq4 is available on your Chart.
How to remove Average daily range (ADR) indicator:
• First step: Select the Chart where is the Indicator running in your Meta Trader 4.
• Second Step: Right-click into the chart.
• Third step: Indicators list.
• At the last: Select the indicator and delete it.
These are simple and easy steps that you need to follow before starting trade because it gives you buy and sell zone indicator with almost 90% precision.
Ahead you are going to begin in real account trading you need to trade at the minimum for one month as a demo in any MT4 or MT5 brokers. It awards you more potential for getting quality payback in long or short term trading across also moving average.