In coronal open-field regions, such as coronal holes, there are many transverse waves propagating along magnetic flux tubes, which are generally interpreted as kink waves. Previous studies have highlighted their potential role in coronal heating, solar wind acceleration, and seismological diagnostics of various physical parameters. This study aims to investigate propagating kink waves, considering both vertical and horizontal density inhomogeneity, using 3D magnetohydrodynamic (MHD) simulations. We established a 3D MHD model of a gravitationally stratified open flux tube, incorporating a velocity driver at the lower boundary to excite propagating kink waves. Forward modelling was conducted to synthesise observational signatures of the Fe ix 17.1 nm line. Resonant absorption and density stratification both affect the wave amplitude. When diagnosing the relative density profile with velocity amplitude, resonant damping needs to be properly considered to avoid a possible underestimation. In addition, unlike standing modes, propagating waves are believed to be Kelvin-Helmholtz stable. In the presence of vertical stratification, however, the phase mixing of transverse motions around the tube boundary can still induce small-scale structures, partially dissipating wave energy and leading to a temperature increase, especially at higher altitudes. Moreover, we conducted forward modeling to synthesise observational signatures, which revealed the promising potential of future coronal imaging spectrometers such as MUSE in resolving these wave-induced signatures. Also, the synthesised intensity signals exhibit apparent periodic variations, offering a potential method for indirectly observing propagating kink waves with current extreme
ultraviolet imagers.