<!DOCTYPE html>Average Daily Range (ADR): How to Use It in Trading | MixFunded
MixFunded

Education · Indicators

Average Daily Range (ADR).

How far a market usually moves in a day. What average daily range is, how to calculate it, and how to use it to set realistic targets and stops.

What ADR measures.

ADR is the average distance between each day's high and low over a set period, often 5, 10 or 20 days.

How to use it.

  • Set targets that fit inside the typical daily move.
  • Avoid chasing a trade when the market has already covered most of its ADR.
  • Size positions so a normal day's range does not threaten your daily loss limit.

ADR vs ATR.

ATR includes gaps between closes and opens; ADR uses only the high-low range. For forex, which trades nearly continuously, they are usually similar.

FAQ

Perguntas frequentes.

Put the theory to work.

Start a $50,000 evaluation for $5.