ATR and ADR

romanmorris

First, does ATR(nPeriods)2.0 mean 2 as an absolute value or 2% relative to the stock price?

Also, is there a way to scan for ADR? Maybe another indicator that uses ADR? Or, how would you translate between the two? I'm learning from someone who scans ADR(20) > 2.4% - if that's not something I can do on StockCharts, how would you approximate it with ATR?

markd

ATR - average true range - is explained here:

https://school.stockcharts.com/doku.php?id=technical_indicators:average_true_range_atr

I'm not sure what ADR refers to - advance decline ratio ? Advance decline indicators are explained here:

https://school.stockcharts.com/doku.php?id=index_symbols:advance_decline_indi

I don't believe the two indicators are related, so I don't think you could approximate one with the other.

You can scan for any indicator in the Technical Indicators drop down on the Advanced Scan Workbench page. If an indicator is not there, you can't. ATR is there. ADR is not, although AccDist might be a substitute. AccDist is explained here:

https://school.stockcharts.com/doku.php?id=technical_indicators:accumulation_distribution_line

romanmorris

Average Daily Range - like ATR but intraday only (not taking gaps into account)

markd

I'm not aware of an ADR indicator on Stockcharts.

The ATR indicator can be applied to any time frame on charts. In general, so far, you can't scan for intraday criteria on Stockcharts.

romanmorris

I think I figured it out. If I want to scan for stocks with an Average Daily Range greater that 2% of the stock's closing price over the last 20 days:

[SMA(20,Range) > Close/50]

The denominator can be altered for a greater daily range: x = 1/(%/100) i.e. above, 1/.02=50

romanmorris

oops, you can solve for x more easily: 100/ADR%. So, above 100/2=50

lmkwin

Is ADR the same as ATR?

ATR/Close would express ATR as a percentage of Close. Or you can use the SMA value as well I believe.

romanmorris

The difference is that ADR measures the range intraday, whereas ATR takes gaps into account

ATR/Close simplifies my formula though - thanks for that.