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Posted on Feb 16, 2022 at 12:47 PM
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Shall I tell you about the Average Daily Range indicator? It is a technical indicator used to assess the volatility of an asset by calculating the average difference between the highest and lowest price over a time interval.
In Forex Trading, every currency pair moves an average number of pips per daily session.
Having an idea of this figure can help you trade moderately in view of your expectations for the day, and also set your Take-Profit and Stop-Loss levels.
For instance, if the GBP/USD pair moves an average of 100 pips daily, it will be smart to know that you may not be able to earn all 100 pips for every single trade every day.
Therefore, you can aim to target a maximum of 40-70 pips based on your trading style and strategy.
Now if you have a PC, there are indicators that can be installed on your Meta-Trader (MT4) platforms to automatically generate the levels for you.
You can drop a comment below for our custom ADR setup for your PC MT4 if that’s what you want.
Looking to discover some types of Forex indicators? Click Here to learn about the Ichimoku Kinko Hyo.
You can drop a request below for our custom ADR setup for your PC MT4 if that’s what you want.
However, if you’re heavily dependent on your Mobile MT4 platform, then this simple guide is for you.
Every day, we will post the ADR levels for the “BIG-4” pairs, and then you can do the following to get the ADR on your Charts while on the GO!
STEP 1: Go to the Charts for the specific Currency pair, touch the charts for the “Blue Circle” to come up, then select the ‘Objects’ icon at the bottom-left corner.
STEP 2: The list of objects will appear. Go ahead to select ‘Horizontal Line’ from the list.
STEP 3: It should already appear on your Charts now. Now we have the first line.
STEP 4: To get 2 lines on the Charts, repeat “STEPs 1&2” again. On the screen that appears, touch the ‘+’ sign above to reveal the list of Objects. Then select ‘Horizontal Line’ again. You should now see 2 lines on your chart.
STEP 5: Let’s now make each of these lines the ADR HIGH & LOW respectively. Repeat ‘’STEP 1” again. You should see the screen below. Then select the first HORIZONTAL LINE.
STEP 6: Change NAME to ‘Daily High’. Assuming today’s EUR/JPY DAILY HIGH = 132.30, edit POINT to the Currency Pair’s ADR HIGH price for that day. Also, ensure that TIME-FRAMES is set to ‘ALL’. If you prefer thicker lines, touch the STYLE to select the Pixel of your choice. Then tap 'DONE' at the top after you’re done.
STEP 7: Repeat STEP 5, but select the second HORIZONTAL LINE. Change NAME to ‘Daily Low’. Assuming today’s EUR/JPY DAILY LOW = 131.21, edit POINT to the Currency Pair’s ADR LOW price for that day, then tap 'DONE'.
Now there you have it, your ADR Levels for today on your MT4 Charts.
For subsequent days later, simply perform only STEPs 6 and 7 by editing the Price Levels for that day and you’re good to go.
The ADR gives 2 specific Price Levels every day: High and Low prices.
The ADR HIGH gives you an idea where Price is likely to stop rising for that day while ADR LOW identifies where Price will likely not fall below for that day.
While your personal Trading Strategy already determines for you, whether you’re to BUY or SELL, the ADR Price Levels helps you identify where you can accurately Take your Profits or set your Stop-Loss because the price will most likely reverse at the Daily ADR High & Low Level.
I hope this helps you improve your Trade outcomes going forward.
The daily ADR price levels of four major pairs - EURUSD, USDCAD, GBPUSD and EURJPY are now available daily on the 'Extras' section of our blog! You may click the red button below to access them.
View the daily ADR levels here
Q - Can I have the setup files and installation instructions for mobile and PC?
A - Kindly click here to access the ADR setups and installation instructions for mobile and PC.
Q - The ADR lines are not appearing on my mobile MT4. What can I do?
A - Ensure to tick "ALL TIMEFRAMES" on the settings of each of the lines. If you try this and still encounter challenges, kindly send us screenshots on WhatsApp via 08182045184.
Please let’s know if this helped you, or share your questions on areas where you may need further help with.
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