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Miscellaneous > TypicalPrice

Article/Author: Omega Research Inc., 1997

Download: TYPICAL_PRICE.ELA

Category: Indicator > Miscellaneous

Description:

The Typical Price for each bar is calculated as an average of 3 values: high, low and close. This value is then plotted on the chart. An average of the Typical Price from the most recent number of bars specified by the input Length is also plotted. Using the Typical Price instead of the close in calculating and plotting, say, a moving average weighs the high and low into the calculation.

Usage:

This indicator can be used in a manner similar to the Mov Avg 2 Lines, with attention given to the direction and relative position of prices, Typical Price and the average of the Typical Price. (Typical Price is known to some traders as the pivot point.)




Inputs:

Length - Number of bars of data to be included in calculation of the average of Typical Price

EasyLanguage Code:

INPUT: LENGTH(14);

PLOT1(TYPICALPRICE, "TYPICALPRICE");
PLOT2(AVERAGEFC(TYPICALPRICE, LENGTH), "AVERAGE");

{ALERT CRITERIA}
IF PLOT1 CROSSES OVER PLOT2 THEN
ALERT("TYPICAL PRICE HAS CROSSED OVER ITS AVERAGE")
ELSE
IF PLOT1 CROSSES UNDER PLOT2 THEN
ALERT("TYPICAL PRICE HAS CROSSED UNDER ITS AVERAGE");