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ADR Ratio Table (ADR 1/ ADR 2)

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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.

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