Average Daily Range - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources - MetaTrader 5 Resources

Average daily range is a measure of an asset's volatility. It shows the average price movement between the highest and lowest prices over the past few days.

To calculate the average, the indicator first calculates the difference between the highest and lowest prices for a given number of days, and then calculates the average of the calculated data:

 Average daily range = SMA (high price - low price, length) 

The Average Day Range and ATR (Average True Range) technical indicators are used to analyze market volatility, but are calculated and interpreted differently.

Average daily range (ADR) measures the average range of price movements over a specific period. To calculate ADR, you typically calculate the difference between the highest and lowest prices for each day over a selected period (for example, 14 days) and then average these differences. ADRs help traders understand the expected volatility of an instrument during a trading day and use this information to plan trading strategies.

Average true range (ATR) can also be used to measure volatility, but is calculated slightly differently, making it a more versatile and accurate indicator. To calculate ATR, you first determine the true range for each day, which is the maximum of the following three values:

These true range values ​​are then used to calculate the average over a specific period of time (usually 14 days). ATR takes into account the gap between days, making it a more accurate measure of volatility, especially in markets with large price gaps between trading sessions.

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Modern indicators display your daily trading statistics directly on MT5 charts. Track your trading performance with a beautiful flat design panel that displays lot size, order volume, and daily profit and loss.

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Attachment download

📎 averagedayrange.mq5 (3.51 KB)

Source: MQL5 #49013