Daily Range Used vs D1 ATR: Estimating How Much Room Is Left

[FXS Prop Desk]

D1 ATR(14) shows the average daily range. Comparing it with the range already covered today gives a quick sense of how much movement may remain.

How to use it:

• Today's range so far: high minus low.
• Divide by D1 ATR: e.g. 60 pips covered vs 80 ATR = 75% used.
• Above 80–90%, new extended moves are less likely, unless there is news.

Practical applications:

• Avoid breakout trades late in the day when most of the range is used.
• Use remaining range to set realistic targets.
• On days where less than 30% is used by the London close, a New York expansion is more likely.

Several indicators display this directly, or it can be calculated in a spreadsheet.

Do you use daily range vs ATR in your planning?