Technical Studies Reference
Average Daily Range
This study calculates and displays a Moving Average of the Daily Range of the price data.
Let the Low Price and High Price at Index \(t\) be denoted as \(L_t\) and \(H_t\), respectively. Let the Input Length be denoted as \(n\). Then we denote the Daily Range at Index \(t\) as \(DR_t\). We calculate the Daily Range for \(t \geq 0\) as follows.\(DR_t = H_t - L_t\)
We denote the Average Daily Range at Index \(t\) for the given Length as \(ADR_t(n)\), and we calculate it in terms of a Simple Moving Average for \(t \geq n - 1\) as follows.\(ADR_t(n) = SMA_t(DR,n)\)
This study only functions properly on a Historical Daily chart. A Historical Daily chart can be opened with File >> Find Symbol >> [select symbol] >> Open Historical Chart.
Once you add this study to a Historical Daily chart, the study can be overlaid to an Intraday chart by using the Study/Price Overlay study.
The spreadsheet below contains the formulas for this study in Spreadsheet format. Save this Spreadsheet to the Data Files Folder.
Open it through File >> Open Spreadsheet.
*Last modified Friday, 11th March, 2022.