MT4 Average Daily Range MT4 Indicator Forex Indicator

Introduction to the Average Daily Range Indicator
Day traders often lose money not because they don't know how to trade, but because greed can lead them to aim for impossible take-profit targets that the price is more likely to not reach.
This technical indicator is a complementary technical indicator that helps day traders avoid setting impossible take-profit targets.

What is the Average Daily Range indicator?
The Average Daily Range (ADR) metric measures the average point range over a predetermined time period coverage, specifically the past 20 days, 10 days, 5 days, and the current day. It also measures the distance between the current price and the price extremes (top and bottom) of the range.
This indicator is designed to help traders decide whether their profit target price is realistic.

How does the Average Daily Range indicator work?
The Average Daily Range indicator bases its average daily range on the average true range (ATR) of prices within the daily time frame. The 20-day, 10-day and 5-day average daily ranges are basically the 20-day, 10-day and 5-day ATR on a daily time frame. Today's ADR is simply the day's price range in points.

It also measures the distance of the current price from the projected price high and low based on the 5-day ADR. It predicts tops by adding the 5-day ADR to the low of today's range, and predicts bottoms by subtracting the 5-day ADR from the high of today's range. It then measures the distance from the current price to the projected top and bottom of the range.

It also measures the direction of the price in points, indicating a positive number if the movement is positive and a negative number if the movement is negative.

The indicator then displays these measurements in points in the upper left corner of the chart.

How to Use the Average Daily Range Indicator for MT4
As mentioned earlier, this indicator is designed to help traders evaluate whether their take-profit targets are realistic and whether the price still has some room to move in the trading direction based on the average daily fluctuations in price.

Therefore, this indicator should only be used as a complement to another trading setup. It does not provide trend, momentum or reversal entry signals.

Traders should only pursue day trade setups if their projected target price is still within the projected daily range.

Purchase transaction settings
When to enter?

Only open a buy trade setup if the logical target take profit price is below the projected top based on the ADR. Set your stop loss below your entry point.

When to quit?

Set your take profit target at a logical resistance level below the top of the expected ADR.

Sell ​​trade setup
When to enter?

A sell trade setup is only opened if the logical target take profit price is above the expected bottom based on the ADR. Place your stop loss above your entry point.

When to quit?

Set your take profit target at a logical support level above the expected bottom of the ADR.

in conclusion
As mentioned before, this indicator is only a supplementary indicator. It does not provide entry signals or trade directional deviations like most indicators. However, this indicator is very useful for day traders.

MT4 indicator download instructions
The Average Daily Range MT4 Indicator is a Metatrader 4 (MT4) indicator. The essence of this technical indicator is to convert accumulated historical data.
The Average Daily Range MT4 Indicator provides an opportunity to detect various peculiarities and patterns in price dynamics that are invisible to the naked eye.
Based on this information, traders can assume further price movements and adjust their strategies accordingly.

The MT4 installation directory/MQL4/Indicators is the indicator folder (place mq4 and ex4 indicators)
The MT4 installation directory/templates is the template folder (where tpl template files are placed)
Then restart the MT4 platform, and your technical indicators or templates will be installed.
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