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# How to find average daily range in forex?

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Forex trading can be a lucrative venture if the right strategies are employed. It involves buying and selling currencies in pairs, with a goal of making a profit from the fluctuations in the exchange rates. One of the key factors to consider when trading forex is the average daily range (ADR) of the currency pair. The ADR helps traders to determine the potential profit or loss that they can make on a given day. In this article, we will explain how to find the ADR in forex.

### What is the average daily range?

The average daily range (ADR) is the average distance between the high and low prices of a currency pair during a trading day. It represents the volatility of the currency pair and is measured in pips. The ADR can help traders to determine the potential profit or loss that they can make on a given day.

### How to find the ADR in forex

There are several ways to find the ADR in forex. One of the easiest methods is to use an ADR indicator. Most trading platforms have an ADR indicator that calculates the ADR for you. Alternatively, you can calculate the ADR manually using the following steps:

### Step 1: Determine the time frame

The first step is to determine the time frame that you want to calculate the ADR for. Most traders use the daily time frame, which means that the ADR is calculated based on the high and low prices of the currency pair during a 24-hour period.

### Step 2: Calculate the daily range

The next step is to calculate the daily range of the currency pair. The daily range is simply the difference between the high and low prices of the currency pair for the day. For example, if the high price of the EUR/USD pair for the day is 1.1200 and the low price is 1.1100, the daily range is 100 pips.

### Step 3: Calculate the ADR

The final step is to calculate the ADR by averaging the daily ranges over a certain period of time. Most traders use a 14-day period, which means that the ADR is calculated by adding up the daily ranges for the past 14 days and dividing the sum by 14. For example, if the daily ranges for the past 14 days are as follows: