ATR v ADR

[DerekC]

Is there a difference between the Average Trading Range and the Average Daily Range, and if so, what is the difference?

 

[hayseed]

Is there a difference between the Average Trading Range and the Average Daily Range, and if so, what is the difference?

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hey dereck..... atr accounts for gaps..... adr does not....h

 

[DerekC]

Thank you Hayseed, I appreciate it.

 

[Enivid]

Average Trading Range

If you mean Average True Range, the difference with ADR would look like this:



The image shows an example of difference for True Range vs. Daily Range. Average True Range is just an arithmetic mean of the True Ranges for the N last candles. Average Daily Range is an arithmetic mean of of the Daily Ranges for the N last candles.

 

[DerekC]

I guess I did, referred to as ATR. Thanks Enivid, that picture helps me see what Hayseed was referring to. Thank you.

 

[Ary Barroso]

I see, you have already got your answer! By the way, ATR is much popular than ADR; because it shows much clear data! Yes, in my live trading chart I like to use ATR in my daily trading chart!