The ADR indicator is used to find potential support and resistance zones, which can be used for finding high probable entry and exit points. Besides using support and resistance zones, you can also use swing points, psychological price levels,
For example, look at the NZD/CAD pair,. This indicator tracks the average daily range of a currency pair. It is based on a predefined look back period. So, you can use a daily look back period of 10 days. You can focus on the most recent price action over the look back period to finnd the expected range for a currency pair.
Sometimes, the pair may exceed the range due to high volatility. Also, keep in mind that the pair may fall short of the range when there is low volatility. You do not need to set unrealistic
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