What's the logic behind ADR high/low indicators?

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.

It can be done like this:

For the projected ADR high, take the low of the day and add the ADR. That is how far one can expect the price to move up at that point in time

For the projected ADR low, take the high of the day and subtract the ADR. That is how far one can expect the price to move down at that point in time

Continually adjust the projection to take into account new highs and lows.

Good ideas, thanks for that.