Daily Range Indicator for Metatrader 4 (MT4)
The Daily Range Indicator for MT4 (Metatrader 4), also called Average Daily Range (ADR) indicator, is a fundamental tool for day traders that calculates the average daily range, along with chosen confidence levels, so that you can better estimate the daily volatility. It also shows the expected top and bottom price based on this average range.
Features
- Shows the average daily range along with the completed %
- Pinpoints the current day’s range in % to the average
- Shows the 75% and 90% daily range confidence levels (customizable)
- Plots the expected daily range directly on the chart
Daily Range Panel
Daily Range
The indicator’s panel shows the average daily range, along with the % of the current day’s range compared to the average. For example, if the average daily range is 100 pips, and today’s daily range was 70 pips so far, the indicator will show 70% next to the average range’s value.
Confidence levels
The panel also shows two confidence levels (by default, the 75% and 90% confidence levels). A 90% confidence level of 200 pips for example, means that 90% of the times, the daily range was 200 pips or lower. In other words, the daily range will be at most 200 pips with a 90% confidence.
How to use
Avoid trading pairs whose daily range is approaching 100% or more, especially in days when there weren’t any significant news events.
Daily Range Lines
The indicator draws the expected daily range directly on the chart. The top line is the previous day’s closing price + half the average daily range, while the bottom line is the previous day’s closing price – half the average daily range.
Keep in mind this is just the average range, the daily ranges will vary greatly from day-to-day, and on days where there are high impact news events (you may use our free news indicator to alert you of these), it is expected that the average range will be far greater than the historical average.
