The ATR indicator is a helpful tool for measuring the range of bars. It quickly and easily helps evaluate the ATR’s current spread (range), which is especially useful for VSA traders.
The indicator for classifying the range of bars (candles) uses the moving average and its multiples. Accordingly, the area where the volume is located (relative to the moving average) is labeled as ultra-low, low, average, high, very high, or ultra-high.
Our ATR indicator is rendered as a histogram.
By default, there are six zones that the user can change. Then, depending on which zone corresponds to the ATR, the histogram bar is colored by the appropriate color. This way, you can easily recognize how high the ATR (spread/range) is compared to the previous bars.