Average Daily Range Projections

Creates a trailing high and low projection based on the Average Daily Range.

1. Track the Session High and Low to determine the Daily Range.
   
2. Average the Daily Range by a fixed Period to create an Average Daily Range [ADR(P)].
   
3. Track the Prior Daily Range [PDR].
   
4. Track the Current Daily Range [CDR].
   
5. Track the % of Range completion [%R] relative to the CDR & ADR(P).
   
6. From the Session Low, project an Average Daily Range High [ADR HI] by adding the ADR.
   
7. From the Session High, project an Average Daily Range Low [ADR LO] by subtracting the ADR.
   

When %R reaches 100% or greater, the ADR HI & LO will lock, showing the range break out or break down. As the Session High and Low create the Daily Range, observe the reaction of price as it reaches the limit of the expected daily range.

• On strongly trending days, CDR is likely greater than PDR and ADR(P). Price can break away.
  
• On ranging days, %R may fail to reach 100% and CDR may be lesser than PDR and ADR(P). Price can bounce around within the bounds of ADR HI & LO.