Quote:
Originally Posted by okeymbio
Pls, how can i caculate the average daily range (ADR) of a currency pair.
how can i caculate and determine its stop loss and take profit?
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If you are only using the ave daily range as an indicator to trade with you should consider also using some other indicators like MACD ,
Average daily range may easiest be seen by setting your display to one day
candles or bars Then just note the difference between the top and bottom of each candle including the wicks. Write down ten of them add them up and divide by ten.
Using ave daily range is ok for range trading until something happens and you get a reversal then you will loose out.
If you use MACD as well look out for divergence and a drop in volume which may happen before a reversal.
Where you set your SL and TP will be given by the previous days candle and also your account level. never put on a trade which will use up mor than 2% of your total.
Also study candle patterns on babypips and practice on a dummy account first.
You will spend many years learning if you survive. 95% of traders loose money overall. Bewared dragons! :-)
Average Daily Range -
05-31-2009, 07:04 AM
06-01-2009, 10:14 AM
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