What it does
Measures the average distance between the daily high and low over a lookback period, expressed in price points or percent. Unlike ATR it typically ignores overnight gaps and focuses purely on intraday travel, giving traders a realistic estimate of how far a symbol tends to move within a session. It is primarily a position-sizing, target-setting and expectation-management tool.
Typeoscillatorseparate pane
How to add it
Click Indicators (ƒx) in the header.
Search “Average Daily Range” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Use ADR to set realistic intraday targets: if a stock has already covered most of its average daily range, the odds of much further extension that day shrink.
- Size positions and place stops in proportion to ADR so that risk is normalized across symbols with different volatility.
- A day that exceeds ADR early on signals unusual volatility, often driven by news, and calls for wider stops or reduced size.
- Compare current ADR to its own history: expanding ADR marks a shift to a higher-volatility regime, contracting ADR often precedes breakouts.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Period | number | 14 | 1–200 |
| Timeframe | select | Chart | Chart / 1 minute / 5 minutes / 15 minutes / 30 minutes / 1 hour / 1 day / 1 week / 1 month |
| Wait for timeframe closes | boolean | On | — |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| ADR(14) | line | #ff9800 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 4 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.
Tips
- The pane keeps its height in saved layouts, so size it once and it survives reloads.
- Resize the pane by dragging its divider; collapse it from the legend row when you need the space back.
- Use Add to favorites in the legend menu; starred studies surface at the top of the picker.
- A custom timeframe input lets it compute on a higher interval than the chart.
Watch out for
- ADR is a statistical average, not a ceiling; trending or news-driven days routinely travel well beyond it.
- Because it ignores gaps, ADR understates total risk for symbols that gap frequently between sessions.