The Volume Weighted ATR indicator is a helpful tool for measuring market activity. It is based on the idea of the Volume-Weighted ATR. Combining these two elements helps identify potential turning points or breakout opportunities.
The indicator for the classification of the activity of the market uses the moving average and its multiples. Accordingly, where the VWATR bar is located (relative to the moving average), it is labelled as ultra-low, low, average, high, very high or ultra high.
By default, there are six zones that can be changed by the user. Depending on which zone corresponds to the Volume Weighted ATR indicator, the histogram bar is colored by the appropriate color.