The Typical Price is a simple concept and can be used as an
alternative to the closing prices in moving average calculations. It is a one
period average of the security's price.
The Typical Price indicator is calculated by adding the high,
low, and closing prices together, and then dividing by three. The result is the
average, or typical price.
Here is an example using the Typical indicator:
In the above example, a 15 period simple moving average of
the typical price is being calculated and not of the closing price
article is a snippet from the
MetaStock Programming Study Guide...
The Simple Secret to Make Metastock Easy & Identify Profitable
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