Average daily range

[VingTsunKuen]

Do you look at it?

For example if price have made 80% of its average daily range and then you got a setup,would you say to hell whit it,i am letting this opportunity to go!?
Or would you still trade this pair?
It looks like the use of average daily range could be useful when one is estimating trade probability.
Cheers!
VTK

 

[duxis]

let's say , last months we have a ADR of 218 pips for EURUSD BUT with a standart deviation of 109 pips !!! you can't say with certainty if you are at 80% ADR you can't take a good opportunity (218/109 = 50% error margin)

ADR is an average and average is not always right (dependent of news releases).