Average Daily Range Lines + VWAP

The Average Daily Range Lines + VWAP indicator provides a specialized framework for identifying key intraday levels and trend direction by combining dynamic price range targets with a multi-anchored Volume Weighted Average Price (VWAP).

Usage

This tool is designed to highlight specific trading windows and support/resistance zones based on daily price movement.

• Trading Windows: When the ADR target is met, the indicator plots a "box" using high, low, and mid-levels from the triggering candle. These boxes represent fresh areas where price interaction is expected.
• Support & Resistance: Price often respects the levels defined by the ADR lines. Users can look for pullbacks to these lines or use them as breakout targets.
• Trend Confirmation: The VWAP acts as a trend filter. Generally, price holding above the VWAP suggests bullish sentiment, while price below suggests bearish sentiment.
• Market Context: The indicator is most effective in non-volatile or trending markets. In highly volatile conditions, you may need to increase the ADR percentage or length to ensure the levels remain relevant.

Details

The script operates by calculating the Average Daily Range (ADR) using a Simple Moving Average of the high-low range over a specified period. At the start of each new trading day, a target value is established based on a percentage of the initial ADR. As price action unfolds, the indicator tracks the accumulated range; once the target is reached, it "locks in" the high, low, and mid-levels of that specific bar to create horizontal lines (ADR Lines).

The integrated VWAP includes an "Anchored" feature. By default, the VWAP can be set to reset (anchor) whenever a new ADR target level is hit, though it also supports standard anchors like Session, Week, or Month.

Settings

ADR Settings

• ADR Length: Sets the lookback period for calculating the Average Daily Range (default is 19).
• ADR percent value target?: Determines the percentage of the ADR required to trigger the plotting of new range lines.

VWAP Settings

• Hide VWAP on 1D or Above: When enabled, the VWAP will not be displayed on daily or higher timeframes.
• Anchor Period: Defines the event that resets the VWAP calculation (e.g., ADR hit, Session, Week, Earnings).
• Source: The price data used for VWAP calculation (default is hlc3).
• Offset: Shifts the VWAP plot forward or backward in time.

Standard Deviation Bands Settings

• Show Band #1-3: Toggles the visibility of up to three standard deviation bands around the VWAP.
• Multiplier #1-3: Adjusts the width of the respective standard deviation bands.

FAQ

How do I access Average Daily Range Lines + VWAP?

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

What is the best timeframe for this indicator?

For day trading, a 5-minute chart is recommended. For swing trading or longer holds, a 30-minute chart with an ADR length of 14 and a target of 80% is often effective.

Why is the VWAP not appearing?

Ensure your chart provides volume data, as the VWAP requires volume for its calculation. Additionally, check if the "Hide VWAP on 1D or Above" setting is enabled while on a high timeframe.