Understanding the Typical price

lucacrebbe

Active Trader
Jun 26, 2017
108
1
32
44
Hi, I came across typical price, but I can't figure out what it really means.

On this website they explain whery well:
https://www.fidelity.com/learning-c...lysis/technical-indicator-guide/typical-price

The Typical Price indicates an average of each day’s price.

Typical Price = ( High + Low + Close ) / 3

I don't know if this is calculated on each candle, I assume that it's calculated per candle-bar... well I don't know if this indicator is affidable... in the example it shows that the price penetrate the moving avearage , but the typical price NOT

How could I build this indicator? My broker has not it. I can't code.
 

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lucacrebbe

Active Trader
Jun 26, 2017
108
1
32
44
There is no need to code anything if you use MetaTrader (MT4 or MT5). You can simply add a Moving Average with Period = 1 and Price = Typical. It will look like this:

View attachment 12903

THank you so much

Do you find it helpful when you have to decide to enter into a trade?

As the example I 've posted, if the candle breaks the moving average, but the typical price it does not, is this an indicator that ''most likley'' that M.A. break was not so ''strong'' ?