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ADR indicator for Forex trading. How to work in the market with ADR.
The abbreviation Forex ADR means Average Daily Range, which in turn can be translated as "average daily range". Even from the name we can immediately draw some preliminary conclusions, in what will be a strong indicator of ADR.
This program is designed for use in MetaTrader 4, but the standard kit is not included, so you can download this indicator below and install it in their platform in a standard way.
The program is available for download on various forums, but only a closed source. This moment would not be so important if not for an unfortunate mistake in the calculation of the indicator, which is easy to notice.
The fact that the graph shows price levels. Wk Low is in its content to reflect at least weekly, but instead we demonstrated for at least the last 100 candles (bars).
Developers have reported that ADR can be on any timeframe, but, apparently, the most adequate period for trading will be H1. Unfortunately, a small error in calculations results in the display of price level, depending on your timeframe, what should not be.
However, the Average Daily Range can be quite useful for trading levels, and, the really use several ways.
Still recommend to pay attention to these two indicators:
• Rubicon
• MFI
In addition to displaying the price levels on the chart, we also see a Bulletin Board, where displays all key information. Below You will find a transcript of all the data, and yet refer to variables of the indicator:
• Day X - calculated in days (used for calculating the custom range);
• Corner - location display;
• Daily High Low Lines - the boundaries of the daily range (on/off);
• Weekly Lines - the border of a week range (on/off), but in fact it's the period with 100 candles;
• ADR Mini - toggle scoreboard indicator.
Due to the lack of file open source, recognize the principle of formation of the levels will not work. However, the levels of well show yourself to establish goals, for example, when trading on the breakout of the Asian session. Often when trading the breakout the trader the question arises, where best to set take profit here, ADR can be very useful.
Another good way to use Average Daily Range - finding optimal levels for setting stop loss. What accommodation options stop loss use in Forex we have previously described. Let me remind you that one of the most popular methods is to set a stop loss at a significant price level, which can be applied the closest of the calculated indicator.
The indicator ADR Forex should be used only in conjunction with other auxiliary programs. To search for entry points is likely this algorithm will be useful not can, but will stand in good stead in the process of working with orders.
Some originality in the method of calculating the location of the levels here, though probably not necessary, because the different fashion options themselves most often do not justify. If you work on TF=H1, it turns out that week the border will almost work correctly, as 100 bar for 1 hour it's four days and 4 hours (supposed to be almost 5 days in a week inside the indicator).
Information display indicator ADR is very convenient and does not take up much space. I have the feeling that the authors of the program have given it the comfort of the trader during trading than the technical side of algorithms. Perhaps with time there will be an updated version, which will be corrected small flaws associated with defining the boundaries of the week. Meanwhile, ADR is more or less working correctly on TF=H1.
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| Category: Binary options | Added by: (07.11.2017)
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| Views: 1681
| Rating: 0.0/0 |
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