ADR% Ext MA

This indicator is designed for aggressive short-term momentum swing traders who want to filter out "dead money" and avoid chasing extended stocks. It helps you objectively measure velocity (ADR%) and risk (Extension from 50MA) to identify the hottest setups before they become overextended.

The core philosophy behind this script is simple:

Velocity: We only want stocks that move fast enough to reward us quickly.

Safety: We want to enter near the "launchpad" (50SMA), not when the move is already stretched.

Timing: We want to ensure the stock hasn't already used up its daily fuel.

Key Features
1. ADR% (Average Daily Range %)

Concept: Measures the velocity of the stock.

Function: Calculates the average daily percentage move over a set period (default 20 days).

Logic: If a stock's ADR is too low (e.g., < 3%), it is considered "dead money" and ignored. The indicator highlights the background in BLUE only when the ADR% meets your minimum threshold.

2. Extension from 50 SMA (measured in ATR)

Concept: Measures how stretched the price is from its trend baseline.

Function: Calculates the distance between the Close and the 50 SMA, expressed as multiples of ATR.

Logic: High momentum plays require a base. If the price is extended more than 4x ATR from the 50 SMA, the risk/reward is skewed (rubber band effect). The blue highlight turns off if the price is too extended.

3. Daily Range Used (Intraday Timing)

Concept: Measures how much of the expected daily move has already happened today.

Function: Compares the current day's range (High - Low) against the ATR.

Display: Used: ATR x 0.50 means the stock has only moved 50% of its average range. If it exceeds 1.0 (100%), the text turns RED, warning you that the move might be exhausted for the day.

Visual Guide
Blue Background Highlight: The "Green Light" zone. It appears only when:

ADR% is high enough (High Momentum).

Price is above 50 SMA (Up Trend).

Price is NOT overextended (Safe Entry Zone).

Dashboard Box (Top Right):

ADR: Shows the raw velocity percentage.

Ext: Shows extension from 50SMA in ATR multiples. (Turns RED if > 4.0).

Used: Shows intraday range consumption. (Turns RED if > 1.0).

MA: Displays the 50 SMA value.

Settings
ADR Length & Threshold: Customize the lookback period and minimum % required (Default: 3%).

Extension Limit: Set the maximum ATR multiple allowed from the 50 SMA (Default: 4x).

Visuals: Customize text size and box position.

Disclaimer: This tool is for educational purposes and trend analysis only. Always manage your risk.