Average Daily Range Chart?

atr.2.png
View attachment 209299
 
You can use Investing.com (real-time) or Tradingview. Just add the ATR (average true range) range and set the number of bars - this is the daily range.
 
Average Daily Range is sometimes distinguished from Average True Range.

Yes, I know, people say never to use the simple moving average and instead use the exponential moving average (ATR), but I've got someone who is stuck on using a simple moving average to calculate the average daily range.
 
jabowery said:
Average Daily Range is sometimes distinguished from Average True Range.

Yes, I know, people say never to use the simple moving average and instead use the exponential moving average (ATR)........
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Exponential ma uses more commissions, usually/faster so if you get a good rate for commission volume, one could use it.But its so average i would keep looking.................................... LOL
 
murray t turtle said:
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Exponential ma uses more commissions, usually/faster so if you get a good rate for commission volume, one could use it.But its so average i would keep looking.................................... LOL
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*WHOOSH*

OK, let me see if I can explain (ruin) the joke:

The promotion of ATR with 1 day interval as the way to compute ADR is biased by the fact that the resulting indicator isn't as smooth and therefore tends to generate more trade events, which means you pay more commissions than someone using simple moving average to compute ADR. Cui Bono? The exchanges charging the commissions -- who are likely behind the promotion of ATR with 1 day interval as "superior" to SMA ADR.

"But its so average..."

I guess 'average' is a play on words (double entendre) of some kind perhaps the "its" referring to "it's" as in the 1day ATR being no better than SMA ADR in predicting trade opportunities, so, in order to avoid the added commissions, "keep looking for an SMA ADR"? Or did that phrase also go *WHOOSH* over my head?
 
jabowery said:
*WHOOSH*

OK, let me see if I can explain (ruin) the joke:

The promotion of ATR with 1 day interval as the way to compute ADR is biased by the fact that the resulting indicator isn't as smooth and therefore tends to generate more trade events, which means you pay more commissions than someone using simple moving average to compute ADR. Cui Bono? The exchanges charging the commissions -- who are likely behind the promotion of ATR with 1 day interval as "superior" to SMA ADR.

"But its so average..."

I guess 'average' is a play on words (double entendre) of some kind perhaps the "its" referring to "it's" as in the 1day ATR being no better than SMA ADR in predicting trade opportunities, so, in order to avoid the added commissions, "keep looking for an SMA ADR"? Or did that phrase also go *WHOOSH* over my head?
More...

You from Shenandoah, IA ?
I wired a motel there in the 90s with a pool and addition a few years later. :)
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Yep. I moved here in 2007 and even since then it's passed through a few hands . It's an apartment complex now. The economy out here has had a rough time. Things may be turning around a bit since manufacturing is coming back.
 
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There is nothing that says ATR requires exponential average calculation. Use any averaging method you want. And choosing an averaging method does not constitute finding an edge.

The fundamental difference between ATR and ADR is not the average calculation. It is the difference between the meaning of "T" and "D".

ADR is useful when viewed as a percentage of price... and then consider that ratio with respect to commissions to determine which stocks you might want to focus on... if day trading. ATR is not as useful in that determination.

Even better for some people is ADR excluding the opening N minutes of trade.
 
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