What does Average Daily Range (ADR) show?

The average of the daily high to low range over the last N days.

How is Average Daily Range (ADR) built?

For each day the high minus the low is taken, and the average of the last days is plotted.

Shows how far a market usually moves in a day. Useful to judge whether a move is large or small. It is a range, not a direction.

Volatility, ADR

What it shows: The average of the daily high to low range over the last N days.
How it is built: For each day the high minus the low is taken, and the average of the last days is plotted.
How to use it: Shows how far a market usually moves in a day.
Useful to judge whether a move is large or small.
It is a range, not a direction.