Three-Block Delta Volume and Price Projection Indicator
Summary
The Three Step Future-Trend indicator divides candle volume into three consecutive blocks and assigns each bar positive volume when it closes above its open, or negative volume otherwise. For each block, it sums this delta volume alongside total volume, then colors chart rectangles according to whether the block’s delta is positive or negative. The block length is configurable, with the described default set at 25 bars.
A separate projection uses average closing values from the three blocks, adjusted to the current close, to draw a curve into future bars. Delta volume sets the projection’s color but does not affect its price calculation. An optional panel reports block delta and total volume and can show the projected endpoint. The document explains the construction and visual display but provides no testing or performance evidence. Candle direction is only a proxy for buying or selling pressure, and the projection is a heuristic based on past closes, not a validated forecast.
Key ideas
- Each candle’s volume is treated as positive or negative according to whether its close is above its open.
- The indicator compares delta volume and total volume across three consecutive blocks.
- Colored chart rectangles represent the sign of delta volume in each block.
- The projected price curve is derived from block closing-price averages and adjusted to the current close.
- Delta volume determines the projection’s color, while optional panel settings control displayed data.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.