ADR-based strategies: trading the average daily range

FTC Community TeamStaff116 views

The average daily range tells you what a normal day looks like, and several strategies grow from it: fade extensions beyond 100% ADR, target 50% ADR, or trade breaks when the range is unusually compressed.

ADR-based strategies: trading the average daily range — support and resistance diagram
Price bouncing between support and resistance

How do you use ADR?

  • the period and pairs you track it on
  • the ADR-based rules in your plan
  • how you handle days when the range already exceeded ADR
ADR-based strategies: trading the average daily range — trend versus range diagram
A trending market compared with a ranging one

The ATR guide is the tool behind most ADR work.

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