Average Daily Range Excluding Sunday Bars
Summary
This chart indicator estimates the Average Daily Range (ADR) while excluding Sunday bars, which can have shortened or irregular sessions. It tracks the current day's high and low, compares the day's range with the ADR, and displays the remaining distance in points to the ADR boundary above and below the current price. The default lookback is 20 days, and a configurable fraction of ADR determines when the remaining room is highlighted as low.
The displayed ADR is formed by averaging several intermediate range averages over different windows, rather than simply using the mean across the full configured period. The code also shows a status when either side of the day's range has met or exceeded the ADR. This is a descriptive range gauge, not a forecast: reaching an average range does not establish that price will stop moving, and the document supplies no performance evidence. Its readings also depend on the instrument's daily-bar conventions and point size.
Key ideas
- The indicator omits Sunday bars when building daily ranges.
- It compares the current day's high-low range with a configurable ADR period.
- Room-up and room-down readings estimate the distance to the ADR boundary in points.
- A configurable fraction of ADR marks when remaining room is low.
- ADR is a historical reference, not a guarantee that price will reverse or stop.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.