To make an informed decision to buy or sell, you need to know how much power reserve the trading instrument has left. Like all such technical indicators, ADR uses an averaging formula in its calculations to meet the needs of the trader. The ADR (Average Daily Range) indicator refers to the category of ATR (Average True Range) indicators and, as the name implies, displays the average daily volatility of a financial asset. Using the ADR indicator in trading strategies.The article covers the following subjects: You will learn what an average daily range is and how to apply it in Forex market analysis. In addition, the differences between the ATR and IR indicators are analyzed, and recommendations for their use are given. The article provides the indicator formula and the calculation of the ADR value for the EURUSD currency pair, as well as describes the most popular trading strategies. The indicator shows levels in the chart where one should take profits and open new trading positions. By using them, a trader can increase the potential income. The ADR indicator is based on statistical patterns.