The average daily range is a nice tool (or maybe better said, just a useful statistic) that’s most practical for day-trading the Forex market, although it’s definitely also useful for other trading styles like scalping or swing trading.
The average daily range (ADR) can be calculated manually, you may use an indicator to do that, or even an already built -in indicator in Metatrader like the Average True Range (ATR) can show you this. Only if you are using the ATR, remember to switch to the daily timeframe because the ATR shows the average range for the timeframe it is plotted on. And, for what we’ll discuss here, we need the average ranges of the daily candles.
The average daily range (ADR) can be calculated manually, you may use an indicator to do that, or even an already built -in indicator in Metatrader like the Average True Range (ATR) can show you this. Only if you are using the ATR, remember to switch to the daily timeframe because the ATR shows the average range for the timeframe it is plotted on. And, for what we’ll discuss here, we need the average ranges of the daily candles.
