Dislikedhi everyone, would someone be kind enough to explain the ADR to me? i see it on my current USDJPY saying ADR: 45.3% and today 135. but what do those numbers mean in noob terms? how does indicator aler my decision to buy or sell? thankIgnored
It does not indicate buy or sell but gives you heads up.
UJ ADR is about 110. Example day open at 20.10 and went to 2080 then one can conclude 80% of the move roughly on bull side has already taken place hence going long after 80% of daily ADR has less probability to succeed.Its a great way to quickly see that being late buyer or seller does not have good probability to succeed.
Take also into account that during high impact news or fundemetal factor like recent Chinese stock market crash pairs can travel 5 times the distance.Recent crazy moves on G pairs were in 1k move in 1day.
Does not happen often but one should be aware of fundies and news always.
In trading, you have to be defensive and aggressive at the same time