![]() Price usually reverses from these levels. because the high represents the overbought conditions during high volatility and the low level indicates oversold conditions. ![]() The high and low levels of ADR indicator also acts as key levels. Now you can adjust stop loss to below the ADR line to keep your stop-loss safe. For example, according to the intraday chart pattern, the stop loss is above the lower ADR line. So to stay away from the market during a very high Volatility period.Īs the two lines are drawn by calculating the average so they help in adjusting the stop loss or take profit levels. If price breaks the upper or lower line then it! means market volatility is great than usual. These lines indicate that price will remain within those lines. ![]() But you can change the value to 10 or 15 or any other value according to your strategy.Īfter calculating the average, ADR plots two lines above and below the current price. It will use the data of the last five daily candlesticks to calculate the current ADR. By default, the ADR indicator calculates the average daily range of the previous five days.
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