Average Daily Range [Blaz]

Version 1.0 – Published October 2025: Initial release

1. Overview & Purpose

The Average Daily Range [Blaz] is an advanced volatility assessment tool designed to give traders a clear, real-time view of the market's expected daily movement. It calculates the average range between daily highs and lows over a user-defined historical period and projects this average onto the current trading session.

By visualising the potential high and low boundaries for the day, this indicator assists in setting realistic profit targets, managing risk effectively, and identifying when price action is becoming overextended relative to its recent volatility profile. It is an essential tool for day traders and swing traders across all markets, including Forex, Stocks, Crypto, Futures, and Commodities.

2. Core Functionality & Key Features

The indicator provides a dynamic, multi-faceted analysis of daily volatility:

• Historical ADR Calculation: Automatically computes the Average Daily Range based on the specified number of previous trading days (configurable from 1 to 20).
  
• Real-Time Range Tracking: Monitors and displays the current day's live price range as it develops.
  
• Percentage Used Metric: Shows the percentage of the historical ADR that the current day's range has already consumed, providing an immediate gauge of remaining volatility potential.
  
• Remaining Range Projection: Visually highlights the potential upward and downward movement remaining to meet the average range, displayed as semi-transparent areas on the chart.
  
• Daily Open Reference: Plots customisable vertical separation lines and horizontal price lines at the daily open to clearly anchor the current session's price action.
  

3. Visual Components & Analytical Insights

A fully configured Average Daily Range [Blaz] setup displays several key analytical components that work together to provide a comprehensive volatility overview.

3.1. Information Table

A highly customizable data table provides a concise summary of all critical metrics at a glance:

• Historical Ranges: Displays the individual daily ranges for the selected lookback period.
  
• ADR Value: The calculated average range.
  
• Today's Range: The live, developing range for the current session.
  
• % Used: A colour-coded percentage (turning orange upon exceeding 100% and red upon exceeding 150%) showing how much of the average volatility has been consumed.
  

3.2. Visual Range Projections

• Remaining Range Zones: When the current day's range is below the historical average, semi-transparent zones extend from the current day's extreme high and low, illustrating the additional movement required to reach the ADR. This provides an instant visual cue for potential target zones.
  
• Daily Open Markers: Clean, customisable lines mark the start of each trading day (vertical line) and the daily open price (horizontal line), helping to contextualise intraday price moves.
  

4. Input Parameters and Settings

4.1. General Settings

• Lookback: Set the number of days used to calculate the Average Daily Range (1-20).
  
• Set Alert: Configure alerts to be notified when the current day's range consumes a significant portion (e.g., 100% or more) of the historical ADR.
  

4.2. Table Customization

• Visibility & Style: Toggle the table and historical data on/off. Fully customise the header and body colours, text colours, border style, and font sizes.
  
• Placement & Orientation: Precisely position the table anywhere on the chart (Top/Bottom/Centre, Left/Right) and choose between Horizontal or Vertical layout to best suit your chart layout.
  

4.3. Visual Style Controls

• Remaining Range: Toggle the projection zones on/off and customise their colour and transparency.
  
• Daily Open Markers: Independently control the visibility, colour, style, and width of the daily separation line and the open price line.
  

5. Protected Logic & Original Design

The Average Daily Range [Blaz] indicator incorporates proprietary logic for efficiently tracking intraday extremes, managing historical data arrays, and dynamically rendering visual elements. The closed-source nature of this tool protects the author's original code structure and optimisation techniques, particularly the real-time area fill projection logic for the remaining daily range and the dynamic table management system. This ensures the indicator remains performant and reliable while being freely accessible to the entire TradingView community.

6. Disclaimer & Terms of Use

This indicator, titled Average Daily Range [Blaz], has been independently developed by the author. The code and its structural logic are original and were written entirely from scratch to reflect a unique and efficient approach to volatility analysis. The internal mechanics were written from scratch and are not based on any publicly available script or third-party code.

This tool is provided solely for educational and informational purposes. It is not intended as financial advice, investment guidance, or a specific recommendation to buy or sell any financial instrument. The indicator is designed to assist with technical analysis based on volatility but does not guarantee accuracy or profitability.

Trading financial markets involves significant risk, including the possibility of loss of capital. By using this indicator, you acknowledge and accept that you are solely responsible for any decisions you make and for all trading outcomes. No part of this script should be considered a signal or assurance of success in the market.