The Average Range is a core metric used to measure an asset's volatility. This indicator evolves the classic concept by integrating the powerful principles taught by The Inner Circle Trader (ICT). It calculates the average difference between the highest and lowest price over a specific time interval and projects this range forward to identify key algorithmic price levels. The central idea is that markets operate within predictable, algorithmically defined ranges. This tool decodes these ranges across multiple timeframes, from intraday sessions to monthly cycles. It provides the Average Session Range (ASR), Average Daily Range (ADR), Average Weekly Range (AWR), and Average Monthly Range (AMR). A key concept is the 1/3rd range level, which is often used to identify the potential exhaustion point of a "Judas Swing" – a false move designed to trap market participants before the real move begins. By understanding these projected ranges, traders can gain a significant edge in identifying high-probability targets, reversal zones, and entry points.
2. Logic
The indicator calculates the average range of a specific period (day, week, month, or custom session) over a user-defined lookback window. It then projects this average range both above and below an anchor price.
2.1 The Anchor By default, the range is projected from the opening price of the current period. Alternatively, it can be calculated from the previous period's closing price, which also enables a live projection for the next period.
2.2 Projections The full average range and the critical 1/3rd levels are drawn on the chart. These levels often act as significant points of support or resistance where order flow is likely to react.
2.3. Time is Key The effectiveness of these levels is deeply connected to the element of time. A reaction at the 1/3rd ADR level during the London or New York open holds more weight than one occurring late in the trading day. This aligns with the ICT concept of the Power of Three: Accumulation, Manipulation, and Distribution.
2.4. Data Table An integrated data table displays the historical ranges for each enabled period. This provides a clear narrative on volatility; a series of smaller-than-average ranges may precede a significant expansion, while larger ranges can signal impending consolidation.
3. Settings & Options
This indicator is highly customizable to fit any trading style or asset class.
3.1. Master Switches
ASR, ADR, AWR, AMR: Individually enable or disable each of the four average range calculations to keep your chart clean and focused.
3.2. Range Calculation Settings
Periods: Set the lookback period (e.g., 5 days, 4 weeks) for each range calculation.
Range Boundary Type (Daily only): Choose between two crucial calculation methods:
Classic (Market Open to Close): Uses the standard daily candle data.
ICT True Day New York (Midnight to Midnight): Aligns the calculation with the ICT methodology, using a 24-hour cycle based on New York midnight.
Half Range Projection Mode: When checked, projects half the average range up and down from the anchor (for a total visual box of 1x the average). When unchecked, it projects the full range up and down (2x total).
AR on the Close: When enabled, this anchors the calculation to the previous period's close and projects the next period's range forward on the live bar.
3.3. Average Session Range (ASR) Settings
The ASR module includes 8 fully customizable and individually toggleable trading sessions, allowing for deep analysis of intraday volatility:
ETH (18:00 - 09:30)
RTH (09:30 - 16:15)
Asia (19:00 - 21:00)
London (02:00 - 05:00)
NY-KZ (07:00 - 09:30)
NY-AM (09:30 - 11:30)
NY-L (11:30 - 13:30)
NY-PM (13:30 - 16:15)
3.4. US Market Holiday Filters These settings prevent low-volume holiday trading from distorting the range calculations, ensuring the data reflects true institutional participation.
Enable Holiday Filters: The master switch for the holiday calendar. It stops the indicator from recording the high and low during a full holiday or after an early market close.
Exclude Holidays from Array: When checked, this completely removes the compressed, abnormal range of a holiday from the moving average calculation. This prevents an artificially small holiday range from shrinking your projections for the following days, giving you more accurate levels.
3.5. Visual & Display Settings
Historical Levels: Show or hide past range projections on the chart.
Line Styles: Independently customize the style (solid, dashed, dotted), width, and color for the full range, 1/3rd range, and anchor lines.
Auto Color: Automatically color lines based on bullish or bearish direction.
Data Table: A toggle to show or hide the range table, with options for size and screen position.
Text Labels & Tooltips: Show or hide text labels on the projection lines. A powerful hover-over tooltip provides detailed information, including the precise price, range size, and potential bullish/bearish percentage change.