A Typical Price is simply anaverage of one periods high, low and close values. A Typical Price is oftenused as an alternative way of viewing price action, and also as a component forcalculating other indicators.. The Typical Price indicator provides a simple,single-line plot of the periods average price. Some traders use the TypicalPrice rather than the closing price when creating moving average penetrationsystems. Typical Price is another approximation of average price for eachperiod and can be used as a filter for moving average systems
For day trading, the TypicalPrice helps you to get a clear view of what the main thrust of the days actionwere.
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