ICT Homework Thread July 6th - 11th


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AnDDe

Well-Known Member
Hi, Can someone please try answer my question i posted in the last thread:

I was just wondering, based on the the ICT_ADR indicator, how is the ADR high and low of the day calculated ?

I originally thought that the ADR start would would be the origin point and then if say the ADR is 60 then it would be 30 pips on each side of this ADR start area but that is not the case.

Can someone please explain to me how this indicator works? I understand the forumla for how the ADR is calculated but just not just why the High and Low is where it is at.

Cheers.
 

AusDoc

Well-Known Member
G'day AnDDe,

That seems like a sensible question and it deserves a better answer than I can give. Maybe someone else will help out. Here are my thoughts though, FWTW.

I can't make much sense of that particular indicator either. From the way I have seen it used, quite frankly, I don't think it is worth worrying about. Others may understand it better and have a thoroughly thought through implementation they can share with us, so we may both learn something from your question. We shall see.

If you understand what ADR is and you keep an eye on the daily range then you already know all you need. Something that projects these levels seems to me to be likely to confuse or mislead. The indicator can no more predict the day's coming high or low than fly to the moon.

I wouldn't waste too much time on this indicator. It is not needed.

Cheers
 

sqa

Village Scribe
AnDDe said:
Hi, Can someone please try answer my question i posted in the last thread:

I was just wondering, based on the the ICT_ADR indicator, how is the ADR high and low of the day calculated ?

I originally thought that the ADR start would would be the origin point and then if say the ADR is 60 then it would be 30 pips on each side of this ADR start area but that is not the case.

Can someone please explain to me how this indicator works? I understand the forumla for how the ADR is calculated but just not just why the High and Low is where it is at.

Cheers.
5 day ADR, which is the version ICT's indicator shows, should be roughly the expected daily range, as an average of the previous 5 days. It has its utility in intra-day swings (ICT has also mentioned using 10 and 20 day versions, as well), simply as a measure of recent volatility.

As for the way the indicator displays, it appears to take the current Range of the Day, then add the remaining amount to hit ADR to the ends of it. So counter-move level gets closer to the daily Swing point, as it moves in 1 direction.
 

rod178

Well-Known Member
I wrote my own ADR indicator. It produces different levels than the ICT version. I came to the conclusion that the iCT version(produced by some other unknown coder) has not been coded correctly, although not having the source makes that supposition on my part.
 

rod178

Well-Known Member
sqa said:
...As for the way the indicator displays, it appears to take the current Range of the Day, then add the remaining amount to hit ADR to the ends of it. ....
Suspect that is the underlying issue, although I ndid not spend any quality time trying to ascertain the reasons for the discrepancies with my initial manual ADR calculations
 

AusDoc

Well-Known Member
sqa said:
5 day ADR, which is the version ICT's indicator shows, should be roughly the expected daily range, as an average of the previous 5 days. It has its utility in intra-day swings (ICT has also mentioned using 10 and 20 day versions, as well), simply as a measure of recent volatility.
Thanks for that sqa. I read that as "no one needs this indicator."

sqa said:
... it appears to take the current Range of the Day, then add the remaining amount to hit ADR to the ends of it. So counter-move level gets closer to the daily Swing point, as it moves in 1 direction.
What? I just can't quite make sense of that. Maybe it is just full of bugs because on my tests it didn't quite do that, not that I'm really sure what you are describing though TBH.

Can anyone make sense of the settings?



The whole thing smacks of failed experiment to me. A piece of junk.

Current and average ranges are important metrics to keep in mind but they can be displayed with any of the numerous indicators available from many places. I developed this one for my purposes, for example.



Once you know the ADR and the current range I can't see how the so-called ICT_ADR indicator adds any value. I can see how it could add confusion.
 

rod178

Well-Known Member
I'll go one step further:

Most of the time a script is the better alternative over an indicator, especially if many process intensive indicators are in use.

Example: there is no sense in using an indicator to display the BRN, 50,80,20 etc. Just add/remove once with a script, which besides reducing processor load makes clean charts simple to create or populate. Same for the ADR and many other indicators. ie most can be replaced with scripts. Far less distracting than a dogs breakfast of indicators.
 

AusDoc

Well-Known Member
Yes, I know what you're saying Rod. It all depends though...

I know the processor argument. Technically it is perfectly sound but in practice it is fairly moot with most modern machines. Very few processors earn their keep really, they just loaf virtually all the time unless they confront a very poorly written application. Mind you, they certainly exist!

Dogs breakfast of indicators or dogs lunch of scripts. I can't see any difference. It's just a case of keeping a tidy toolbox. One advantage of indicators is being able to add them, complete with individual settings, to templates.

I tend to use scripts for more one-off actions or ones that I want to apply universally to a set of open charts. An example would be dropping a single script onto a chart to change all open charts to the same time frame, such as switching everything from M15 to H1 for example. Scripts are great for this type of application.
 

Hopiplaka

My thanks go out to ICT - the life changer
rod178 said:
Suspect that is the underlying issue, although I ndid not spend any quality time trying to ascertain the reasons for the discrepancies with my initial manual ADR calculations
One of the biggest problems with this indicator is that it counts Sundays as a separate day if you are not on a NY close broker.
As said before, it's used to predict how many pips the current day will generate.
One should take this with a grain of salt, a couple of video's ago ICT used the double ADR to predict the high of the day.
And yes, he also uses the 10-20 ADR as well.

So it might just add confusion. If the ADR is reached during LO, will price reverse? Will it go for the double ADR?
 

rod178

Well-Known Member
AusDoc said:
Very few processors earn their keep really, they just loaf virtually all the time unless they confront a very poorly written application. Mind you, they certainly exist!
having twenty open charts as well as three plus broker feeds may be the issue :eek:

AusDoc said:
Dogs breakfast of indicators or dogs lunch of scripts. I can't see any difference. It's just a case of keeping a tidy toolbox. One advantage of indicators is being able to add them, complete with individual settings, to templates.
I found that managing multiple templates can become an issue.
I now write script setting to a file and then load/unload multiple scripts from one button click. Once set up it is much easier to manage than template/indicators. I mostly now use Templates for basic chart settings ie colors and panes etc.

AusDoc said:
.. a single script onto a chart to change all open charts to the same time frame, such as switching everything from M15 to H1 for example. Scripts are great for this type of application.
I wrote a script that does the very same thing ;)
 

AusDoc

Well-Known Member
rod178 said:
I now write script setting to a file and then load/unload multiple scripts from one button click. Once set up it is much easier to manage than template/indicators. I mostly now use Templates for basic chart settings ie colors and panes etc.
Sounds clever Rod.

Hey, wait a minute... what did you do with that indi I wrote for you? Don't tell me you binned it! :(

Oh, ...no, never mind. We've made a mess of this homework thread. I guess this is what hell is like... >:D
 

rod178

Well-Known Member
AusDoc said:
Sounds clever Rod.

Hey, wait a minute... what did you do with that indi I wrote for you? Don't tell me you binned it! :(

Oh, ...no, never mind. We've made a mess of this homework thread. I guess this is what hell is like... >:D

At the time I regarded it as for others who were following the thread. I'm sure that they found it valuable. The feature that I thought they might find useful was multiple previous day Pivots (as in FXI Pivots) and variable pivot start times. The latter finally finally give me the motivation to write a Pivot Script. ie the pivots are now broker feed independent and can be instantly added or removed.

I do not use indicators that do not provide the source code, except for the odd time I desire to perform a comparison or replicate some of the functionality, usually in a script.
 

AusDoc

Well-Known Member
No worries Rod, it wasn't a serious question. I knew a coder like your good self didn't need me to write a simple pivot tool.
 

Tarri

Well-Known Member
Turtle soup on NZDUSD? Asides from breaking the consolidation on the left (late June) there is not much more than that to go on.
 

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