Why Qullamaggie Looks at ADR% First
And How I Use It?
Before Qullamaggie checks the setup, sector etc.
he checks one basic number: ADR%.
Because if a stock cannot move, nothing else matters.
The cleanest setup in the world is useless if the stock is dead.
What is ADR%?
ADR% simply tells you how much a stock normally moves in a day.
Imagine a stock has a 20-day ADR% of 5.
That means, on average, this stock has been moving around 5% per day over the last 20 days.
Now here is how I understand and Trade it.
Simple rule:
ADR% above 5 → good for swing trading
ADR% between 3–5 → okay only if market/sector is strong
ADR% below 3 → usually too slow for swing trading
so, let's say today, while scanning, I find the stock that has ADR% of 5% & has
-Strong Prior Uptrend of 40%+
-Now Pulling back to 21 DEMA
-Last 3-4 days it formed very tight range
-and today it moved only 0.07% with NR5
That is not just a quiet day. This is like a spring getting compressed.
and this is exactly where big traders start paying attention
A 0.7% candle on a stock that normally moves 5% means volatility has collapsed.
Almost soon, expansion will come back.
How to Include it in trading Plan:
Find stocks with High ADR% as a pre-trade filter.
Anything below your threshold drops off immediately & saves hours of chart review on stocks that can't pay you.
Then keep it simple:
Buy only if price breaks above the tight range high.
Your stop should be tight because the whole edge comes from entering when volatility is compressed.
That is the real game.
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