What is one indicator that will literally change your life and most likely have a huge positive impact on your trading? That indicator I will teach for free and show you exactly how to use it in this video. Stay tuned to the very end. Now the indicator is called the average daily range. I'll show you how to access it in trading view. Click on indicators, type in, average and a pry pop up, average day range. Boom, right there. Better than what the indicator is, how to use it and what does it mean? That is the purpose of this video. In the average daily range, it is showing you the indication of how much the particular stock that you're looking at moves every single day, dollar for dollar point for point cent for cent. If you're looking at this on video, for example, where it says 1301, that means on average, every given day, Nvidia is going to move 13 dollars if we zoom into a three minute chart on Nvidia. I look at just this most recent days range. Once you zoom out on the daily chart, zooming back into a smaller time frame, you can remove the average daily range. That's an indication that doesn't really change all that often, but once you know what it is, will dramatically impact your trading because you will have an idea of how far something will move. Here's Nvidia on a three minute chart. We know the average daily range was 13 dollars. So if you happen to buy Nvidia around here, that's at 493. Well, where did it go to? 13 dollars from there is 506. Now, although it didn't quite make it to 506, you would have known as it's getting around to 503, which is three dollars away from this daily average to most likely do what? Well, not get into a trade going that direction because it's already moved. It's general average range. We're very, very, very close to it. Here's another great example. Just the day before on Nvidia. If we go back to the left, again, we know Nvidia's average range is 13 dollars. So here, at open, Nvidia is opening at 42 and it runs up to 493. That's 11. So if you are getting in bullish here, based on whatever particular strategy that you are incorrectly using, if you bought after it's already moved 11 dollars, think about it from now, a math standpoint, how much potential risk on average are you going to be able to capture or lose? And the answer is if it's already moved 11, mathematically, and now you're getting in, well, you know, best case scenario, you probably only have on average two dollars extra for that position to move. So if your stop loss is five, and you know that the best case that the stock is going to do at that point is move an extra two, your risk reward is all thrown off. And better than that, if in the first two hours, the stock has already moved, its general average range, well, guess what? You probably missed that particular move. So now you can be anticipating a correction back into its over average range. If Nvidia moves 13 dollars in the first two hours, and hey, you missed it, you probably should be looking for or trying to analyze or trying to find either a bearish position or no position at all. What's also extremely effective about the average daily range indicator is it allows you to know, should you be day-tring this instrument or not? Let's go look at one of the stocks that I've traded for a very long time, Alcoa. If we pull up ticker symbol AA, Alcoa, we will see how much Alcoa moves on average. And again, the reason this is very useful is because if you're trading it, it's only at $1.51 right now, although just a couple of days ago it was at $1.78, which means it's not moving that much. But in relation to the overall stock price, it's a $32 stock, it moves about $1.50. So if you are looking for smaller sized stocks that are less expensive, right? No Nvidia's, no Tesla's, no Chipotle's, but if you're trying to trade something that's really, really small and has a huge bang for its buck, you can look at volume and then start sorting by the average range. An example, if instead of Alcoa, you want to trade something like AI. Ticker symbol AI about the exact same has a little bit more meat on the bones. The average is $1.80, so you have 30 extra cents as opposed to Alcoa. And you'll notice just a few weeks back, it was trading around $3 while the stock was trading at $40. That means it was moving about 10% per day, which is wild. That's an amazing explosion for growth for options and of course shares. Because the way that I'm viewing the market is I think about it from how many shares do I need to capture the movement on in order to pay my bills? That's my mindset. So if your overall expenses every single month are for the average family in the United States of America, $7,000. That's how's car food clothes, everything all wrapped up into one. Seven grand, in my mind, is $7 of captured share movement on a thousand shares. That's it. $7 on a thousand shares. That's $7,000. And if you don't have a huge trading account, could you go find some stocks that move that are a little bit less expensive like Alcoa and Tigger Symbol AI really zoom in, know that they move about a dollar on average per day. And could you capture 50 cents on a thousand shares? And if you do that 10 times in a month, that is $5,000. Think about this. The math builds. Well, it's second grade math repeated over and over and over. Click in the comments section below if this video was helpful. And if you now know how to use the average daily range more effectively, I really look forward to seeing your winning trades posted as many times you want in the comments section because guess what? All I do is trade for living and reply to people's comments on YouTube so I look forward so I can turn your charts.