Average Daily Range
Volatility, ADR
- What it shows
The average of the daily high to low range over the last N days.
- How it is built
For each day the high minus the low is taken, and the average of the last days is plotted.
Default: Length 14.
- How traders read it
- Shows how far a market usually moves in a day.
- Useful to judge whether a move is large or small.
- It is a range, not a direction.