Please explain ADR indicator for me

[GreenAcres]

All,

I'm trying out the TSR 200 day average daily range indicator and I'm trying to figure out how it works. I undrestand how the numbers are calclated, but not how you would use them.

It looks as if the indicator has no signal capabilitiy and is only used to determine stops based on the average trading range of the day. Am I to assume that if you identified a trade and you wanted to use the indicator, you would set your stop based on the "Maximum Stop Losses" field and set your take profit based on the "Room Up/Room Down" according to whether you are short or long?

If that's the case, can the idicator tell you when a trade doesn't have enough "room" to be succesful? I see the calcs are based on a 1:3 risk ratio, but sometimes the numbers go negative. What is the significance of that?

Basically, if anyone knows how this works, I'd appreciate some pointers.

Thanks,

GA

[drewIOW]

All,

I'm trying out the TSR 200 day average daily range indicator and I'm trying to figure out how it works. I undrestand how the numbers are calclated, but not how you would use them.

It looks as if the indicator has no signal capabilitiy and is only used to determine stops based on the average trading range of the day. Am I to assume that if you identified a trade and you wanted to use the indicator, you would set your stop based on the "Maximum Stop Losses" field and set your take profit based on the "Room Up/Room Down" according to whether you are short or long?

If that's the case, can the idicator tell you when a trade doesn't have enough "room" to be succesful? I see the calcs are based on a 1:3 risk ratio, but sometimes the numbers go negative. What is the significance of that?

Basically, if anyone knows how this works, I'd appreciate some pointers.

Thanks,

GA

Hi GA,
the ADR indicator is to give you some idea how far price has travelled in the average range for that given day. So looking at room up or down you would not want to be looking for a breakout trade if you have run out of room. As for the other parts of the indicator just ignore I don't think anyone knows what they are actually for. Hope this helps. If anyone does know what the other parts of the indicator are for - do tell...
Hope this helps GA..
Drew

[RBY]

ADR Indicator by TSR



I too have had the TSR Average Daily Range (ADR) indicator for awhile. And I also have had questions about what it is trying to tell me. Not to mention how I can use it to polish up my trading acumen.

Don't you just love gadgets that come without instructions? Since I could not find anybody on the internet to tell me, I decided to take the thing apart and I started experimenting with it and here is what I have come up with.

Maybe it'll help you, but I won't guarantee it. I hope it will, but as they say, your mileage may vary.

First I'll address the data group on the left in the indicator window (See attached image)

Currency pair and time frame currently on display - self explanatory. NZDUSD 60.
(Hey, I had to assume some level of forex expertise on the part of the reader in order to write this.)

Average Daily Range: - The number is expressed here is in four digits because this broker/dealer's data feed is providing five digits after the decimal point (i.e. current price of 0.73098. So the 1002 is really not a daily range of 1,002 pips (duh), but rather a more realistic 100.2 pips. I know - it doesn't state that. You're "supposed to know" that. BTW, some people call that tenth of a pip a pipette. I'll explain below where that ADR number came from. First I have to explain some other things. Patience.

Risk to Reward Ratio: This is a number you get to set. You do that in the Custom Indicator properties box that you see displayed on the right. You will find this and the other settings described here on the Inputs tab (displayed). I don't have the time or space to explain money management and setting Risk:Reward levels here. However the indicator default is 3.0, which means of course Risk $1.00:Reward $3.00. This number will affect the Maximum StopLosses on the indicator (covered below). More patience.

Let's drop down to the next two lines in the indicator which start out:
Prev 1 Day Range: 824 (82.4 pips) Prev 10 Days Range: 1127 (112.7 pips)
Prev 5 Days Range: 992 (99.2 pips) Prev 200 Days Range: 1065 (106.5 pips)

Prev 1 Day Range: That is yesterday's range in pips from the highest bid price to the lowest bid price. Yesterday is defined as the data that falls between the dotted vertical bars (chart) which denote day beginnings and endings. See how easy this is?
Prev 5 Days Range: | These are average number of pips in the previous n days.
Prev 10 Days Range: | You decide the number of days you want the indicator to display.
Prev 200 Days Range: | You plug the numbers into the aforementioned Inputs tab on the right.

Remember above when I said that I would explain where the ADR number on the first line came from? That ADR (in this case 1002 - or 100.2 pips) is simply the average of the four average range numbers explained immediately above. Go ahead, I'll wait while you add up 824 + 992 + 1127 + 1065 to get 4008. Divide that by four and you will get ... voila! ... 1002. Coincidence? I think not.

Now the issue of whether that makes any sense for an ADR that you are going to be relying upon is another matter. I didn't design the thing. I just took it apart to see how it works. Autopsies are never pretty.

Now look just to the right of all that and you will come to:
Room UP: No, this is not a walkup flat
Room DN: Nor is this a ground floor apartment.

Here's the explanation. From where the price is currently (0.73098 - I know, you need really good eyesight), this indicator is telling you, on the fly, how many pips (and pipettes) it is UP to the top of the current Average Daily Range, or ADR (defined above), as well as DOWN to the bottom of the same ADR.

Try to think of it this way. If you were (in your wisdom) going to go long from this price, this indicator is telling you that you have 88.3 pips of head room to go before you bump up against the ADR upper limit (admittedly, an imaginary ceiling).

Or if you said, "Naw - he's crazy, I'm going short", then you have 78.7 pips of movement before you are down against the ADR bottom limit.

Now, wasn't that easy? You can start figuring your profits right now. Well, maybe not quite yet.

But, you say, what if I am wrong? Shouldn't I set a stop loss, just in case? Okay, that is what the next section is for. Move your gaze to the center-right of the indicator where you will find the following useful information (which also changes on the fly as the current price changes):

Maximum StopLosses
Long: 294 (that's actually 29.4 pips, but you knew that) Pips at 0.7280 (your S/L to go long)
Short: 262 (that's actually 26.2pips, and you knew that) Pips at 0.7336 (your S/L to go short)

Those values are, of course, a product of your setting of a Risk:Reward Ratio of 1:3 and the calculated ADR and the current price for this currpair.

Now we come to the end (stop clapping). Three peices of data are here, two moderately useful, one totally useless.

DailyLow DailyHigh
Curr/Day 0.72979 0.73313
Price 0.73098 0.73098

The DailyLow is the lowest price achieved in today's session. The DailyHigh is ... (oh, I can tell by the look on your face, you already know this one. Smarty).

The useless information? The current price, not just once, but twice. Who knows what it's doing there? I sure don't.

There. Was your patience rewarded?
You want your money back? Sorry - no refunds. Besides, it is surely worth what you paid for it.

As we say in Latin America, bueno suerte!
Your humble servant, Rich

[isaacdjumanji]

how do i download thds and pls help wif its application