Average Daily Range (ADR) Calculation
If I am not mistaken, Weekly ADR = last 5 days ADR...each daily range is added up over the last 5 days and divided by 5. It is the same formula no matter what the period back is. 180day ADR is each days range for the previous 180days added up and divided by 180.
I got it by translating the Tradingview indicator: Sw1tchFX - Average Daily Range
This would be the hig - the low of the daily candle + the high - the low of the previous daily candle until the fifth candle
And then divided by 5 to get the average
Average5DayAdr = ((day_one_high - day_one_low) + (day_two_high - day_two_low) + (day_three_high - day_three_low) + (day_four_high - day_four_low) + (day_five_high - day_five_low)) / 5
I think that:
Average5WeeksAdr= (week candle high - week candle low) etc...
I think it would be like this
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Hi!
I understand that the Average Daily Range is calculated over several days where each day's range (hi - lo) is averaged.
Can someone explain to me what people mean when they say Weekly ADR or Monthly ADR or 180day ADR? How is it calculated?
e.g. Does Weekly ADR = last week's ADR of the week's 5 trading days?
I have seen many people use these terms including people talk about yearly ADR but have so far never seen a rule that defines how it should be calculated.
Any help is explaining would be well appreciated.
Cheers!