Average Daily Pip Movement [Mate]

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📘 User Guide – Average Daily Pip Movement [Mate] Indicator

1. Overview

The purpose of the indicator is to predict the possible outcome range of the expected daily pip movement in the forex market.
The levels are used to visualize how far it can move up or down on a given day based on historical averages.

2. Main functions

🔹 Calculate daily pip movement

Calculates the current daily range (High – Low) in pips.

This is updated in real time.

🔹 Average pip movement (ADR/ATR)

ADR (Average Daily Range): a simple average of the daily pip range of the last n days.

ATR (Average True Range): also takes into account gaps, therefore it is more sensitive to volatility.

🔹 Upper and lower band forecast

From a selected base price (opening or previous day) calculates:

Upper band: base price + average daily pip movement

Lower band: base price – average daily pip movement

The bands are displayed with plotted lines and a colored zone.

🔹 Tabular chart

A small table in the upper right corner of the chart:

Current pip movement (daily High–Low real-time value)

Expected daily average (ADR or ATR value)

🔹 Alerts

Can be set to notify you when the price:

crosses the upper level

crosses the lower level

3. Settings

DR day required to calculate the daily average:

Value of 1 pip (pip_multiplier): depending on the currency pair (e.g. 0.0001 for EURUSD, 0.01 for JPY pairs).

Table size (table_size_input): adjustable: Small / Medium / Large / Extra Large.

Alert (alert_on_avg_cross): can be enabled if you want to be alerted when crossing levels.

Base price choice (base_choice):

Daily open → classic ADR forecast.

Previous day close → alternative forecast.

Average calculation method (method_choice):

ADR → classic High–Low based average.

ATR → also takes into account gap as a measure of buyer volatility.

4. Evaluation on the chart

The range between the fills shows the blue expected daily movement.

The green line is the upper band (possible target for upward movement).

The red line is the lower band (possible target for downward movement).

The numbers shown in the table compare the actual daily movement with the average.

5. Trader Usage Tips

If the price reaches the upper or lower band very quickly, it often occurs or consolidation follows.

If the price cannot reach the average range, it may be a sign of a low volatility day.

ADR is better used for day trading target zones,

ATR gives a more accurate picture of extreme situations.

6. Limitations and Notes

In Forex, the difference between ATR and ADR is less spectacular (small gaps).

The indicator is statistical in nature, it does not guarantee that the price will reach the levels.

It is more of a context indicator: it helps to set daily target prices and movement range, but it is not a signal for trading in itself.

ADR (High–Low average) and ATR (True Range average) often run very close to each other because:

If there are no large gaps between the daily candles, then True Range ≈ High − Low, that is, ATR ≈ ADR.

The difference is visible when there are large gaps at the openings → in this case the ATR will be larger, because the True Range also takes the gap into account.

⚖️ So:

ADR is more of a classic “average daily movement in pips” statistic.

ATR is more of a “daily volatility” indicator, which is more sensitive to gaps and sudden swings.

Therefore, on most currency pairs (where large gaps are two less common, such as in forex), it gives almost the same result, but with stocks or indices the difference is more noticeable.

7. Trader optimization

The forex market is continuous, so large gaps are rarer, but rollover (at the change of day, especially at Monday opening or after Friday closing on Monday morning) can cause smaller or larger gaps.

ADR → shows the classic “average daily range” very well, which is more of a statistical reference.

ATR → better indicates real volatility during rollovers and more extreme periods, because it also includes the gap.

In Forex, people tend to think like this:

Daytrader / scalper → better ADR, because it is used to predict the daily output range.

Swing / gap risk monitor → better ATR, because it better shows the expected extreme movements.

👉 So it is worth testing both strategies: ADR is more stable, but ATR is more “sensitive” to unusual situations.

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📘 Average Daily Pip Movement [Mate] – Short Description

This indicator displays the expected daily pip movement range in the forex market, based on either the ADR (Average Daily Range) or the ATR (Average True Range) method.
The green and red bands represent the upper and lower boundaries of the expected daily movement, derived from historical averages.
A table in the top-right corner of the chart helps with interpretation, showing:

the current upward pip movement (from the open to the High),

the current downward pip movement (from the open to the Low),

and the expected daily average.

This allows traders to quickly compare actual movement with historical averages and define potential daily outcomes.

📘 User Guide – Average Daily Pip Movement [Mate] Indicator

1. Overview

The goal of the indicator is to forecast the possible outcome range of daily pip movement in the forex market.
The levels help visualize how far the price may move up or down during a day, based on historical averages.

2. Key Features

🔹 Daily pip movement calculation

Calculates the current daily range (High – Low) in pips.

Updates in real time.

🔹 Average pip movement (ADR/ATR)

ADR (Average Daily Range): a simple average of the daily pip ranges over the past n days.

ATR (Average True Range): includes gaps, making it more sensitive to volatility.

🔹 Projection of upper and lower bands

Calculated from a chosen base price (daily open or previous day’s close):

Upper band = base price + average daily pip movement

Lower band = base price – average daily pip movement

Displayed with plotted lines and a shaded area.

🔹 Tabular display

A small table in the top-right corner of the chart shows:

Current pip movement (upward and downward, separately)

Expected daily average (ADR or ATR value)

🔹 Alerts

Can notify when the price:

crosses above the upper level

crosses below the lower level

3. Settings

Number of days for average (length): defines the ADR/ATR period.

Pip value (pip_multiplier): depends on the currency pair (e.g. 0.0001 for EURUSD, 0.01 for JPY pairs).

Table size (table_size_input): options: Small / Medium / Large / Extra Large.

Alerts (alert_on_avg_cross): can be enabled for level crossings.

Base price choice (base_choice): daily open or previous day’s close.

Average calculation method (method_choice): ADR or ATR.

4. Interpretation on the Chart

The shaded blue area marks the expected daily range.

The green line = upper band (potential upward target).

The red line = lower band (potential downward target).

The table values help compare actual daily movement to the average.

5. Trading Tips

If price quickly reaches the upper or lower band → often followed by a reversal or consolidation.

If price fails to reach the average range → signals a low-volatility day.

ADR: more useful for day trading target zones.

ATR: more accurate in extreme conditions.

6. Limitations & Notes

In forex, the difference between ATR and ADR is smaller (fewer gaps).

The indicator is statistical → it does not guarantee that price will reach the levels.

Best used as a context indicator, not as a standalone trading signal.

7. Trader Optimization

The forex market is continuous, but gaps may occur during rollover (daily session changes, Monday openings).

ADR → represents the statistical “average daily range.”

ATR → more precise during rollovers and extreme moves.

Daytraders/scalpers → prefer ADR for intraday targets.

Swing traders / gap-risk monitoring → prefer ATR for better sensitivity.
👉 Both methods should be tested: ADR is more stable, ATR is more sensitive to unusual conditions.