What is ADR?
ADR is a volatility and range reference rather than a directional oscillator. The product exposes a projected high and low around the current daily open.
Volatility
Average Daily Range explained
Average Daily Range, or ADR, measures typical daily movement. AlertoWatch exposes ADR high and low reference levels built from the last 14 completed daily candles and today’s open.
How it works
AlertoWatch averages high-minus-low across the last 14 completed daily candles. ADR high equals today’s open plus that average; ADR low equals today’s open minus it.
How traders often interpret it
Price approaching or crossing an ADR level can describe a relatively large daily move. It does not mean the market must stop or reverse.
What it can be useful for
- daily range context
- extension awareness
- price-versus-ADR crossings
- filtering intraday conditions
Indicators it pairs well with
VWAP adds intraday location context to daily range extension.
RSI adds momentum context around an ADR level.
The daily open is the anchor used by the ADR high and low calculation.
Using ADR in AlertoWatch
Turn the indicator relationship into a precise monitored condition. These are plain-English rule ideas, not recommendations or promises about market outcomes.
- Alert me when price crosses above ADR high.
- Alert me when price crosses below ADR low.
- Alert me when price reaches ADR high while RSI is elevated.
Limitations
ADR is contextual and not directional. Price can continue moving after reaching or crossing a typical daily range level.
FAQ
Does ADR predict the daily high or low?
No. It supplies range context, not a guaranteed turning point.
Is ADR the same as ATR?
No. ADR specifically uses daily high-low ranges.
How does AlertoWatch calculate ADR?
It uses the average range of the last 14 completed daily candles around today’s open.
How are ADR conditions exposed?
ADR high and ADR low are available as price-like levels in supported crossover rules.