Volume Stops: Candle Signals and Opening-Price Stop Levels
Summary
The document describes a three-bar volume and candle indicator adapted for ProRealTime. It identifies potential bullish and bearish signals by combining the direction of recent candles with a rising or falling sequence in volume, then colors qualifying candles differently. The accompanying explanation treats candle openings as possible support or resistance levels and describes a stop level at the signal candle’s open that becomes active only after a later close crosses that level.
The material provides indicator logic but no market, timeframe, entry rules, exit rules beyond the stated stop concept, or performance evidence. The displayed bearish condition for one signal compares a volume value with itself, which cannot establish the stated volume trend; that part of the implementation may therefore be erroneous. The signals should not be treated as validated trading results.
Key ideas
- The indicator combines three-bar volume changes with candle direction to mark bullish or bearish signals.
- Bullish and bearish signal candles receive different visual colors.
- The explanation places a stop at the signal candle’s opening price and activates it after a closing-price breach.
- One bearish code condition compares a volume reading with itself, so the implementation may contain an error.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.