OPEN-SOURCE SCRIPT
ADR Ratio Table (ADR 1/ ADR 2)
ADR Ratio Table is a market condition filter designed to compare short-term volatility with the broader market environment.
The indicator calculates two Average Daily Range (ADR) values using user-defined periods (for example, 5-day ADR and 21-day ADR) and displays their ratio in a table.
ADR Ratio = Short-Term ADR / Long-Term ADR
This ratio helps identify volatility regimes:
A value above 1.0 indicates that recent volatility is higher than the market’s longer-term average, suggesting expansion conditions.
A value below 1.0 indicates compressed volatility, where directional moves are less likely to follow through.
Its purpose is to act as a pre-trade filter, helping traders decide whether current market conditions are suitable for strategies that rely on range expansion and directional continuation.
The indicator calculates two Average Daily Range (ADR) values using user-defined periods (for example, 5-day ADR and 21-day ADR) and displays their ratio in a table.
ADR Ratio = Short-Term ADR / Long-Term ADR
This ratio helps identify volatility regimes:
A value above 1.0 indicates that recent volatility is higher than the market’s longer-term average, suggesting expansion conditions.
A value below 1.0 indicates compressed volatility, where directional moves are less likely to follow through.
Its purpose is to act as a pre-trade filter, helping traders decide whether current market conditions are suitable for strategies that rely on range expansion and directional continuation.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.