summary: how to use the ATR and ADR reports to set realistic profit targets and spot reversal zones, including the respect-vs-exceed read, the weekday and streak subreports, and how to set the indicator up so it matches your chart.
what they measure
ATR (average true range) and ADR (average daily range) both answer the same basic question: how far does price usually travel from the high to the low of the day? ATR uses the true-range calculation, ADR is the simpler high-minus-low version. the reports and the logic are effectively parallel, so most of what follows applies to both.
the value comes off the standard TradingView indicator on the daily timeframe. a few things worth knowing about how edgeful reads it:
edgeful uses a shorter length than the TradingView default of 14. 5 and 7 are the common choices, and the default the platform leaves it on is 5. the 14-length isn't the one to use here.
when you pick a session (say NY), only the price action inside that session box counts toward the range. a NY-session ATR is not the same number as a 24-hour ATR.
the report always references yesterday's completed ATR/ADR, never today's. today's value keeps changing as price moves, so edgeful anchors to a number that's already set in stone.
how to read it
each day is bucketed as respected (the day's high-to-low range stayed within the ATR/ADR) or exceeded (the range went beyond it). the headline number is how often price respects the range over your lookback.
the whole edge sits on one idea: most days respect ATR. exceeding it is the minority outcome. open the report for your ticker, session, and lookback to see how strong that respect rate is right now, and lean on it accordingly.
the subreports
each report has a handful of subreports that sharpen the read.
standard
the respect-vs-exceed split over your lookback. start here to get the base rate.
by weekday
the same split filtered to a single weekday. low-range days (often Mondays) tend to respect ATR heavily, while higher-range days (often Thursdays and Fridays) exceed it more often. use it to keep targets conservative on high-respect days and hold runners on high-exceed days.
range to ATR / range to ADR (by weekday)
instead of a yes/no respect read, this shows the average percentage of the range price actually covers, by weekday. under 100% means the typical day falls short of the full range, over 100% means it usually goes beyond. multiply that percentage by the current ATR to get an expected-move figure for today.
by streak
conditioned on yesterday: if the range was exceeded yesterday, how often is it exceeded again today (and the same for respected). the strong edge is on the exceeded side — a second straight exceed day is uncommon, so after an outsized day, expect price to pull back inside the range.
by extension
looks only at the days that exceeded ATR and asks how much further they traveled, as a percentage of ATR. once price has cleared the range on a trending day, this gives the next target zone (the range plus the average extension). it also shows the single largest historical extension as an outlier reference — not a target.
how traders use it
the report is built for two symmetric jobs, both anchored on price usually respecting the range:
setting profit targets. if you're already in the move and the day's range is approaching ATR, that's the spot to take profits or lock the trade in, because exceeding the range is the minority outcome.
finding reversal zones. if you missed the initial move, look for entries against it as the day's range nears the ATR boundary, expecting price to stay within range.
the by-streak and by-extension views handle the exception: after an exceed day, don't expect a repeat; and once a trend day clears ATR, use the extension zone for the next target.
setting it up
on your chart, add the TradingView average true range indicator (for ATR) or the average day range indicator (for ADR). set the length to 5 or 7 rather than the default 14, and match your session so the value reflects the same hours you trade. the ATR zones custom indicator greys out days that have already exceeded ATR, so you can see exceed days on the chart at a glance.
tips
the numbers drift with the market. a stat that holds across 1 year, 6 months, and 3 months is more reliable than one that only shows up on the longest lookback. re-pull the report on the window that matches how you trade today.
a few outlier days can pull the "range to ATR" average up, so sanity-check it against a shorter window before you size a target off it.
getting consistent results from any report takes customization, reps, and time — the report gives you the read, the execution is still yours.