- Color Grey: Rangebound or Option Seller's Market. You may see a lot of small candles & range-bound trading here.
- Color Red: Choppy & Flashy or Stop Loss Hunting. You may see large up and down moves looking to hit SL's
- Color Green: Directional Market or Option Buyer's Market. You will expect to see a more smooth ride in one direction followed by another depending on chart levels.
This indicator plays with & ATR with moving averages to find good trading fields and may be helpful when trading options to time the market.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.