The Daily Range Calculator for MT4 is an analytical tool that provides traders with essential market metrics to support informed decision-making. It displays key data such as the average daily range, risk-to-reward ratio, maximum stop-loss levels for long and short positions, and the daily high and low prices of a selected trading pair.
Although the indicator can be applied to any chart timeframe, it is most effective on higher timeframes, where daily volatility and price structure can be evaluated more accurately.
Key Features
Average Daily Range (ADR)
Measures the typical price movement of a trading pair within a day, helping traders understand market volatility.
Risk-to-Reward Ratio Calculation
Assists in evaluating potential profit compared to potential loss before entering a trade.
Maximum Stop-Loss Levels
Provides suggested stop-loss limits for both long and short positions based on market range.
Daily High and Low Prices
Displays the current day’s price extremes to help identify potential breakout or reversal zones.
Informational Display Only
The indicator does not generate buy or sell signals but provides critical data to support trading decisions.
How to Use the Daily Range Calculator
Apply the indicator to your chart (preferably higher timeframes such as H4 or above).
Review the average daily range to understand expected price movement.
Use the risk-to-reward ratio to assess trade viability.
Refer to maximum stop-loss levels to manage risk effectively.
Monitor daily high and low prices to identify potential entry or exit zones.
Combine with technical indicators such as RSI or Stochastic Oscillator to refine trade signals.
Conclusion
The Daily Range Calculator for MT4 is a practical decision-support tool that delivers a comprehensive snapshot of market conditions. By presenting volatility metrics, risk parameters, and daily price levels in one place, it helps traders better plan entries, exits, and risk management strategies.
