3 Day Average Range (3 DAR)
Definition of '3 Day Average Range (3 DAR)'
Here is an example working the ES numbers for Wednesday, 9 June 2010:
Total = 74 points
Divide 74 by 3 = 24.6 Points (round down to 24.5) to get the Max Range.
Take 80% of the Max Range = 19.6 (Round down to 19.5) to get the Minimum range.
As with all projection methods we are constantly looking for swing highs and lows and trying to figure out if a high or low has been put in yet for the day. After 90 minutes you have a good feel and probability for the day so that is a great time to run the numbers.
This concept was first mentioned by BruceM in a topic called Being Wrong and the 3 DAR.
Compare this to the 3 WAR.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.