Volume Flow Indicator Using Directional Volume and Moving Averages

Summary

Volume Flow v3 separates volume on rising candles from volume on falling candles, then smooths each series with a selectable simple, exponential, or double exponential moving average. The difference between those averages indicates which side has had greater directional volume; the indicator displays its magnitude as a colored area. Moving-average crossovers are presented as possible trend changes or retracements, while unusually large directional volume bars are highlighted using a configurable multiplier.

The supplied strategy logic enters long when bullish volume crosses above its smoothed average multiplied by the breakout factor, and short when bearish volume meets the corresponding condition. The settings include a 14-period average and a 3.1 breakout factor, with BTC/USDT futures backtest dates and chart periods specified. The document reports no backtest outcomes. It also does not specify position exits, so the entries alone do not establish a complete risk-managed trading system; the volume signals may need independent validation and exit rules.

Key ideas

• The indicator separates candle volume into rising-candle and falling-candle components.
• It smooths each directional volume series using a selectable moving-average type.
• The difference between the two averages is used to show directional volume strength.
• A directional volume spike occurs when raw volume crosses its average multiplied by a configurable factor.
• The strategy enters in the direction of a detected spike but does not define exits or report performance.

Tags

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