Price exceeded 225% of ADR10 roughly 2% of the time.Īs you can see from the levels above, if price gets to 150% of its normal ADR the odds of it going further are only 12% giving you a massive advantage. Price exceeded 200% of ADR10 roughly 3% of the time. Price exceeded 175% of ADR10 roughly 6% of the time. Price exceeded 150% of ADR10 roughly 12% of the time. Price exceeded 125% of ADR10 roughly 23% of the time. Price exceeded 100% of ADR10 roughly 42% of the time. These are the ADR extension averages shown by the data: This data indicated that price only moved beyond 200% of it’s ADR 3% of the time, meaning your odds of a reversal or pullback at that level would be 97%!!! Over 20 years of historical data was gathered to find the average percentage chances of price moving beyond specific ADR levels for the major forex pairs and a selection of crosses. You can take advantage of these sharp moves by trading the pullback from the top or bottom of the daily range to the most recent level of support or resistance. Around 60% of the time price trades within its normal average daily range (ADR) and pushes above these levels are usually an indicator of a sharp price move which will typically have a pullback (profit take) move following it.
