Haven Average Daily Range

Overview
This indicator is an enhanced version of the traditional ADR tool that adapts to intraday price movements. Unlike static ADR levels, this indicator dynamically adjusts its range boundaries based on real-time price action while maintaining the original ADR calculation framework.
Key Features

• ADR calculation based on multiple periods (5, 10, and 20 days)
  
• ADR levels displayed with automatic style changes upon range reach
  
• Customizable display settings (color, line style)
  
• Price labels for better visualization
  

The indicator helps traders assess the instrument's volatility, identify potential reversal zones, and plan daily trading targets.
Suitable for all timeframes up to D1 and any trading instrument.
How It Works

1. Session Start (UTC+0): Calculates ADR based on historical data and sets initial High/Low levels
   
2. Dynamic Phase: Monitors price action and adjusts the opposite boundary (ADR Low or High) when new extremes are reached.
   When price creates new Day high price above the opening price, the ADR Low level moves upward proportionally.
   When price creates new Day low price below the opening price, the ADR High level moves downward proportionally.
   
3. Completion Phase: Stops adjustments and highlights breach when price reaches either boundary
   

Trading Application
Entry and Exit Signals
The ADR boundaries serve as key decision points for trade execution. When price approaches the upper ADR boundary, it often signals a potential selling zone, particularly when confluence exists with other overbought indicators such as RSI divergence or resistance levels. Conversely, price reaching the lower ADR boundary frequently indicates potential buying opportunities, especially when supported by oversold conditions or support confluences.
Trend Continuation Assessment
One of the most valuable applications is gauging the probability of continued directional movement. When the current session's price action has not yet reached either ADR boundary, statistical probability favors trend continuation in the established direction. This information helps traders stay with profitable positions longer rather than exiting prematurely.
Reversal and Consolidation Zones
The visual color change to orange when ADR boundaries are reached provides immediate feedback that the normal daily range has been exhausted. At this point, the probability of trend reversal or sideways consolidation increases significantly. This signal helps traders prepare for potential position adjustments or new counter-trend opportunities.