A Volume-Filtered Cumulative Price Pressure Oscillator

Summary

The document defines a technical oscillator intended to display money-flow pressure. Its calculation compares the close at the selected lookback period with a recursively accumulated series. The recursive component adds the close-to-close price change only when current volume is above its moving average over that period; otherwise, it carries the prior value forward. The only stated input is the calculation period.

This design makes the indicator’s accumulation responsive to price changes during relatively high-volume bars and inactive during lower-volume bars. The document provides the formula but no trading rules, parameter guidance, chart examples, backtest, or evidence of predictive value. It also does not explain initialization, boundary handling, or how the resulting oscillator should be interpreted across instruments and timeframes, so any strategy use would require independent validation.

Key ideas

• The indicator accumulates close-to-close changes only when volume exceeds its period moving average.
• When volume is not above its moving average, the cumulative pressure component remains unchanged.
• The final oscillator subtracts the accumulated component from the close at the chosen lookback period.
• The document specifies a period input but supplies no entry, exit, or risk-management rules.
• No performance evidence is given, so predictive usefulness remains unestablished.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.