Hey FF,
Was just wondering if anyone could logically explain how a good ADR high/low indicators would work? I understand the concept of Average Daily Range, but am unsure of:
- How should the lines get drawn above (adr high?) and below (adr low?) the opening price? How is the range applied?
- For the few indicators provided on ff that modify these levels as the price moves throughout the day, what is the logic behind doing so?
In my head, the average daily range does make sense when considering daily highs or lows.. but can't think of the logic that proportions this range out on a new day's trading.
Thanks in advance for any insights.
Was just wondering if anyone could logically explain how a good ADR high/low indicators would work? I understand the concept of Average Daily Range, but am unsure of:
- How should the lines get drawn above (adr high?) and below (adr low?) the opening price? How is the range applied?
- For the few indicators provided on ff that modify these levels as the price moves throughout the day, what is the logic behind doing so?
In my head, the average daily range does make sense when considering daily highs or lows.. but can't think of the logic that proportions this range out on a new day's trading.
Thanks in advance for any insights.