5 Day ADR ICT Intraday Tracker

The 5 Day ADR ICT Intraday Tracker indicator tracks the current day's trading range as a percentage of the 5-day Average Daily Range (ADR) to help traders identify potential exhaustion and expansion points.

Usage

The tool is primarily used by intraday traders to gauge how much of the average daily movement has already been completed. This helps in determining if there is sufficient "room" left for a trade to reach a target or if the pair is likely overextended.

• Entry Identification: Traders often look for entries when the ADR percentage is low (indicated by yellow or orange zones), suggesting the move is in its early stages.
• Exit Strategy: When the ADR reaches or exceeds 100% (indicated by blue/navy zones), it suggests the daily range is fulfilled, which can serve as a signal to take profits or tighten stop losses.
• Range Expansion: By monitoring the daily progress, users can identify periods where the ADR is not being met, which may signal a period of consolidation before a future range expansion.

Details

The script calculates the ADR based on a user-defined lookback period (defaulting to 5 days). It then computes the current day's high and low relative to this average. The output is displayed as a histogram where the color changes based on the percentage of the ADR reached:

• 0% - 25%: Initial daily movement (Yellow).
• 25% - 50%: Growing daily range (Orange).
• 50% - 75%: Mid-range expansion (Red).
• 75% - 100%: Approaching average daily capacity (Purple).
• 100%+: Daily range exceeded (Navy).

The indicator includes a clipping feature to cap the visual output at 100%, making it easier to focus on the completion of the standard range.

Settings

• Days in ADR calculation: Determines the lookback period used to calculate the average daily range.
• Plot number of ADR Back: Specifies the historical depth for the calculations on the chart.
• Clip above 100?: When enabled, the histogram will not exceed the 100% mark, even if the current range is larger than the ADR.

FAQ

How do I use the 5 Day ADR ICT Intraday Tracker?

You can use it to determine if a market has moved too much to justify a new entry or to identify when a market is likely to reverse or consolidate after hitting its average daily limit.

What does it mean when the histogram turns Navy?

When the histogram turns navy, it indicates that the current day's price range has exceeded 100% of the 5-day average daily range, suggesting the move may be overextended.

Where can I access this tool?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.