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03/09/2022 |

Software Update: Average Daily Range Lower and Spearman Indicators

Hello Everyone, and welcome to yet another software update from TrendSpider. Our engineering team has been hard at work on your indicator requests, and in this release we are happy to introduce two new indicators to the platform. The first is called “Average Daily Range Lower” and the second is called “Spearman”. Details after the jump.

The Average Daily Range Lower (ADRL) Indicator is designed to work on intraday timeframes and is not supported on the Daily, Weekly and Monthly timeframes. On intraday charts, it will plot a lower indicator at the bottom of your chart that contains 3 separate data points.

The first data point is a Rolling Daily Range. This is defined and controlled by the only input parameter for this indicator, the length. The default setting is 3. This indicates the 3-day range when set to the default.

The second data point are the vertical bars. If the bar is light in color, it did not exceed the Rolling Daily Range. If the bar dark in color, it did exceed the Rolling Daily Range and is outside of the average. The height also indicates the same information. The color variation is there simply to make it easier to eyeball.

Finally, we have the third data point – the dot on the vertical bar. This dot indicates the degree to which the corresponding candle contributed to changing the daily range. You will notice on inside bars, or bars with a similar or smaller range than other bars around it, that the dot is at the bottom of the bar. This indicates that it did not contribute materially to the range. However if the dot is at the top, then it indicates it contributed materially to the range.


The Spearman is a technical indicator used for evaluation of trend strength and turning point detection. This indicator calculates Spearman’s rank correlation coefficient in order to reveal correlation between actual price changes and extremely strong trend. The Spearman indicator registers two sets of data; Prices of each bar during the specified period in their chronological order and the same prices sorted in an ascending way. Spearman’s ratio found for these two sets is then multiplied by 100. The value of +100 suggests strong correlation with uptrend and -100, with downtrend.

Since the extreme values of +100 and -100 are rarely recorded, values of +80 and -80 might be used as overbought and oversold levels, respectively. Plotting The Spearman indicator along with its short SMA (3 SMA on daily charts) might give an idea when to expect the turning points. Much like with other oscillating indicators that contain two plots, you’ll want to look for the crossovers at overbought and oversold levels. In addition, the location of the of the two plots in relation to the zero line can help a trader determine the proper direction for their trade.

We hope you find these new indicators useful. As always, if you have any platform related questions, feel free to reach out to us in chat using the ‘Contact Us’ button in the bottom right hand corner of your chart.