Implement Average Range (AR) Indicator (#8404)

* Add Average Daily Range indicator and tests

- Implemented AverageDailyRange indicator
- The indicator uses a Simple Moving Average (SMA)
- Created unit tests for the indicator
- Includes example input data and test file (spy_adr.csv)

* Refactor AverageDailyRange Indicator

- Renamed AverageDailyRange to AverageRage for a more generic approach
- Replaced explicit types with 'var'
- Updated method name in test cases
- Placed AR method in the correct alphabetical order

* Solving minor issues with AR indicator

- Replace TradeBar with IBaseDataBar
- Remove unnecessary override methods

Algorithm/QCAlgorithm.Indicators.cs

@@ -145,6 +145,23 @@ public Alpha A(Symbol target, Symbol reference, int alphaPeriod = 1, int betaPer
             return alpha;
         }
 
+        /// <summary>
+        /// Creates a new Average Range (AR) indicator.
+        /// </summary>
+        /// <param name="symbol">The symbol whose Average Range we want to calculate</param>
+        /// <param name="period">The period over which to compute the Average Range</param>
+        /// <param name="resolution">The resolution</param>
+        /// <param name="selector">Selects a value from the BaseData to send into the indicator. If null, defaults to the Value property of BaseData (x => x.Value).</param>
+        /// <returns>The Average Range indicator for the requested symbol over the specified period</returns>
+        [DocumentationAttribute(Indicators)]
+        public AverageRange AR(Symbol symbol, int period, Resolution? resolution = null, Func<IBaseData, IBaseDataBar> selector = null)
+        {
+            var name = CreateIndicatorName(symbol, $"AR({period})", resolution);
+            var averageRange = new AverageRange(name, period);
+            InitializeIndicator(averageRange, resolution, selector, symbol);
+            return averageRange;
+        }
+
         /// <summary>
         /// Creates a new ARIMA indicator.
         /// </summary>
@@ -1894,6 +1911,7 @@ public SimpleMovingAverage SMA(Symbol symbol, int period, Resolution? resolution
             return simpleMovingAverage;
         }
 
+
         /// <summary>
         /// Creates a new Schaff Trend Cycle indicator
         /// </summary>

Indicators/AverageRange.cs

@@ -0,0 +1,81 @@
+/*
+ * QUANTCONNECT.COM - Democratizing Finance, Empowering Individuals.
+ * Lean Algorithmic Trading Engine v2.0. Copyright 2014 QuantConnect Corporation.
+ * 
+ * Licensed under the Apache License, Version 2.0 (the "License"); 
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at http://www.apache.org/licenses/LICENSE-2.0
+ * 
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+*/
+
+using QuantConnect.Data.Market;
+
+namespace QuantConnect.Indicators
+{
+    /// <summary>
+    /// Represents the Average Range (AR) indicator, which calculates the average price range
+    /// </summary>
+    public class AverageRange : BarIndicator, IIndicatorWarmUpPeriodProvider
+    {
+        /// <summary>
+        /// The Simple Moving Average (SMA) used to calculate the average of the price ranges.
+        /// </summary>
+        private readonly SimpleMovingAverage _sma;
+
+        /// <summary>
+        /// Initializes a new instance of the AverageRange class with the specified name and period.
+        /// </summary>
+        /// <param name="name">The name of the AR indicator.</param>
+        /// <param name="period">The number of periods over which to compute the average range.</param>
+        public AverageRange(string name, int period) : base(name)
+        {
+            _sma = new SimpleMovingAverage(name + "_SMA", period);
+        }
+
+        /// <summary>
+        /// Initializes the AR indicator with the default name format and period.
+        /// </summary>
+        public AverageRange(int period)
+            : this($"AR({period})", period)
+        {
+        }
+
+        /// <summary>
+        /// Indicates whether the indicator has enough data to start producing valid results.
+        /// </summary>
+        public override bool IsReady => _sma.IsReady;
+
+        /// <summary>
+        /// The number of periods needed to fully initialize the AR indicator.
+        /// </summary>
+        public int WarmUpPeriod => _sma.WarmUpPeriod;
+
+        /// <summary>
+        /// Resets the indicator and clears the internal state, including the SMA.
+        /// </summary>
+        public override void Reset()
+        {
+            _sma.Reset();
+            base.Reset();
+        }
+
+        /// <summary>
+        /// Computes the next value of the Average Range (AR) by calculating the price range (high - low)
+        /// and passing it to the SMA to get the smoothed value.
+        /// </summary>
+        /// <param name="input">The input data for the current bar, including open, high, low, close values.</param>
+        /// <returns>The computed AR value, which is the smoothed average of price ranges.</returns>
+        protected override decimal ComputeNextValue(IBaseDataBar input)
+        {
+            var priceRange = input.High - input.Low;
+            // Update the SMA with the price range
+            _sma.Update(new IndicatorDataPoint(input.EndTime, priceRange));
+            return _sma.Current.Value;
+        }
+    }
+}

Tests/Indicators/AverageRangeTests.cs

@@ -0,0 +1,80 @@
+/*
+ * QUANTCONNECT.COM - Democratizing Finance, Empowering Individuals.
+ * Lean Algorithmic Trading Engine v2.0. Copyright 2014 QuantConnect Corporation.
+ * 
+ * Licensed under the Apache License, Version 2.0 (the "License"); 
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at http://www.apache.org/licenses/LICENSE-2.0
+ * 
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+*/
+
+using System;
+using System.Collections.Generic;
+using System.Linq;
+using NUnit.Framework;
+using QuantConnect.Data.Market;
+using QuantConnect.Indicators;
+
+namespace QuantConnect.Tests.Indicators
+{
+    [TestFixture]
+    public class AverageRangeTests : CommonIndicatorTests<IBaseDataBar>
+    {
+        protected override IndicatorBase<IBaseDataBar> CreateIndicator()
+        {
+            RenkoBarSize = 1m;
+            VolumeRenkoBarSize = 0.5m;
+            return new AverageRange(20);
+        }
+        protected override string TestFileName => "spy_adr.csv";
+
+        protected override string TestColumnName => "adr";
+
+        [Test]
+        public void ComputesCorrectly()
+        {
+            var period = 20;
+            var adr = new AverageRange(period);
+            var values = new List<TradeBar>();
+            for (int i = 0; i < period; i++)
+            {
+                var value = new TradeBar
+                {
+                    Symbol = Symbol.Empty,
+                    Time = DateTime.Now.AddSeconds(i),
+                    High = 2 * i,
+                    Low = i
+                };
+                adr.Update(value);
+                values.Add(value);
+            }
+            var expected = values.Average(x => x.High - x.Low);
+            Assert.AreEqual(expected, adr.Current.Value);
+        }
+
+        [Test]
+        public void IsReadyAfterPeriodUpdates()
+        {
+            var period = 5;
+            var adr = new AverageRange(period);
+            for (int i = 0; i < period; i++)
+            {
+                Assert.IsFalse(adr.IsReady);
+                var value = new TradeBar
+                {
+                    Symbol = Symbol.Empty,
+                    Time = DateTime.Now.AddSeconds(i),
+                    High = 2 * i,
+                    Low = i
+                };
+                adr.Update(value);
+            }
+            Assert.IsTrue(adr.IsReady);
+        }
+    }
+}

Tests/QuantConnect.Tests.csproj

@@ -603,6 +603,9 @@
     <Content Include="TestData\spy_with_vtx.csv">
       <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
     </Content>
+    <Content Include="TestData\spy_adr.csv">
+      <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
+    </Content>
   </ItemGroup>
   <ItemGroup>
     <Content Include="TestData\symbol-properties\symbol-properties-database.csv">