This is a useful volatility indicator to be used on a Daily time Frame and paired with the Market Regime indicator.
Gray means that the markets have low volatility (calm) and might be consolidating before resuming or reversing the trend. Teal means that volatility is somewhere around the average. And Yellow means it has spiked up and we are in a high volatility regime.
When you pair it with the Market Regime filter for Bull/Bear markets you will find that the best bull markets start from low volatility and mature on high volatility.
More often than not, the top comes when The Market Regime is very strong (Super Bull) and volatility is high.
Similarly, the bottom arrives when the Market Regime is very bearish (Super Bear) and volatility is high.