So what exactly does this concept tell us? Instead, we’re going to focus on the second school of thought, which is the concept of average range – a simpler and much more effective approach. However, this is unnecessary when trading simple price action the way I teach it in my Forex course. The first is to use the actual indicator to calculate the exact average over a specified period of time. There are two schools of thought when it comes to average daily range. Okay, let’s move on… What is Average Daily Range? You have to promise that you will not, under any circumstances, apply the ADR indicator to your charts after reading this post. We’ll discuss the concept of ADR as well as how we can use it to our advantage when trading the Forex market.īut before we dig in, you have to make me a promise. This is a lesson about the concept of average range, rather than a specific indicator. Wait, this is a lesson about an indicator? On Daily Price Action?… You may know them as the ATR and ADR indicators. Average True Range (ATR) and Average Daily Range (ADR) are two of the most common measurements used by traders in the financial markets.
