The script you’ve provided is a TradingView Pine Script indicator for calculating and plotting a “Crypto Risk Index”. Here are the key components of the script and their functions:

  1. Inputs: Configurable parameters include: - Source of the data for calculations (defaulting to the close price). - Moving Average type (SMA or EMA). - ATR (Average True Range) length for volatility calculations. - Volume period for average volume calculations. - Market cap source for total and altcoin market cap data.
  2. ATR Calculation: Calculates the Average True Range (ATR) as a measure of volatility based on the specified length.
  3. Market Cap Data: Retrieves altcoin market cap and total market cap from the specified sources.
  4. Volume: Calculates the average volume over a specified period.
  5. Price Change: Calculates the short-term price change over a specified period.
  6. Normalization and Weighting: Normalizes and weights factors for the risk index calculation. The weights can be adjusted based on your preference.
  7. Risk Index Calculation: Calculates the risk index using the weighted and normalized factors (volatility, market cap, liquidity, and price change) and plots it.
  8. Plotting: Plots the risk index. Additionally, plots solid white lines at threshold levels (0, 0.25, 0.75, and 1) for visual reference.

Overall, the script helps traders assess the level of risk in the crypto market based on several factors (volatility, market cap, liquidity, and price change) and also provides information about the state of the altcoin market compared to the total market. Let me know if you have any specific questions about the code or would like me to modify any part of it.