Average Daily Range (ADR) and Average True Range (ATR) are essential indicators used in trading for volatility analysis. ADR measures the average difference between the maximum and minimum prices over a specific period, such as 14 days. This provides traders with insights into expected price fluctuations within a day, aiding in strategy development.
In contrast, ATR calculates the average of the true range values. The true range considers the differences between today's high and low, today's high and the previous close, and today's low and the previous close. By accounting for these gaps, ATR offers a more comprehensive view of volatility and is valued for adaptability to market changes.
While ADR focuses on daily volatility, ATR’s flexibility makes it suitable for broader applications, including risk management and establishing stop-loss levels. Understanding ...
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#MQL5 #MT5 #ADR
In contrast, ATR calculates the average of the true range values. The true range considers the differences between today's high and low, today's high and the previous close, and today's low and the previous close. By accounting for these gaps, ATR offers a more comprehensive view of volatility and is valued for adaptability to market changes.
While ADR focuses on daily volatility, ATR’s flexibility makes it suitable for broader applications, including risk management and establishing stop-loss levels. Understanding ...
👉 Read | Quotes | @mql5dev
#MQL5 #MT5 #ADR
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