The script creates a custom indicator designed to detect periods of market volatility and potential breakout conditions. It does this by combining elements from two well-known technical analysis tools: the Keltner Channel and Bollinger Bands. The indicator measures the relationship between these two channels to identify when the market is "squeezing," which often precedes significant price movements.

Key features of the indicator include:

1. Volatility Measurement: The script calculates average volatility over a specified period using two different methods, giving a comprehensive view of market conditions.
2. Visual Alerts: The indicator provides visual alerts on the chart when certain conditions are met, changing colors to signal potential trading opportunities.
3. Histogram Representation: It uses a histogram to show the momentum and direction of the price relative to a regression line, helping traders identify trends and reversals.
4. Customizable Parameters: Traders can adjust the length of the lookback period, the scaling factors, and other parameters to fine-tune the indicator to their trading style and preferences.

This indicator is plotted directly on the price chart, making it easy for traders to integrate it into their existing technical analysis and trading strategies