Counter Trend ADR Exist?

Does anyone use a method to calculate ADR for non trend based moves on the longer timeframes?

I really don't understand what you mean by "counter trend" ADR. Average daily range has no trend nor does it "indicate" trend in sny given direction. It is just an average of distance price moved in a day. Perhaps you might better define what you are trying to accomplish by your use of ADR.

Essentially what I understand the question to be is "does anyone use the ADR to determine if the moves on a higher TF are exhausted in order to identify a counter trend entry trigger"

The answer is yes. The better question is who and how to they use it?

Not trying to be snide just trying to clarify the question for anyone who comes across this thread.

I don't apply a whole lot of weight to this type of entry method but there are some who do.

Cheers,

The ADR is a great indicator to determine volatility. I think that what you are asking is does a change in ADR portent a change in trend?
There are many answers to that question, and the main answer is that a change in ADR indicates either increased or decreased volatility which MAY indicate a change in trend. I had developed an indicator using ADR. I created a moving average of ADR over x bars and then would trade when the current .2 of that moving average was below the average. The trade was in the direction of the current trend. I found that trading in periods of RELATIVE low ADR was very sucessful. Boring is beautiful. When the aerage started to increase I found it indicative of a change in trend and was careful to have stops in place. While the trend of the average ADR and the shorter term trend of the ADR was below average, the trend was intact.
Hope this helps

I agree there is a trading theory that uses ADR along with volume to help identify turning points in the market. But it generally does not use ADR alone. Volume is a very important part of that equation.

There are times when tops and/or bottoms are marked by extreme price volatility resulting in a large ADR. As well there are times when tops and/or bottoms are marked with low or even "normal" volatility resulting in an ADR that does not seem unusual. The big difference is in how volume coordinates with these areas. A low ADR with a high volume can indicate a change in order flow from net bullish to bearish (or vise versa). As well a large ADR with low volume can mean the same thing.

Unfortunately in Forex, there is no reliable volume measurement available as the market is decentralized. Tick volume plays a role but does not state the true volume (# of lots exchanged) in each tick...only the number of transactions, assuming each tick is a transaction.

The result is that this becomes unreliable when trying to find counter trend entries. Your probable outcome is usually less than 30% wins. Having spent the last several years testing and tweaking this theory on my own platform I've decided it is not worth any more time and research. Not to say it can't be done, just that I have not been able to do it consistently enough to make it pay for the losses I incur trading this way.

Trends are where its at...most trend go longer and farther than most people think, and trying to "feel" for a top or bottom only eats away my equity and doesn't provide enough opportunity to get it back.

Good info guys except MMaker

I believe that getting a sense of range for countrend moves you can position yourself to know your at a top/bottom. I usually see the range being met from a previous retracement like a move of wave 2 and wave 4 similar a final swipe exceeding the ADR and reversal takes place. Apologies if the opening question wasn;t specific & clearer.