Typical Price is another approximation of average price for each period and
can be used as a filter for
moving average systems.
Calculated as: (High + Low + Close) / 3
Typical Price is a component of the Money Flow
Index and Commodity Channel Index.
Intel is shown with 21-day
exponential moving average (MA) and
(TP), used as a filter.
Mouse over chart captions to display trading signals.
Using the Single Moving Average System,
note how many times you would have been whipsawed in/out of your position when
price crosses the MA.
Compare this to the long [L] and short [S] signals when Typical Price is
used as a filter.
The days marked are signal days. A trade would be entered on the next day.
See Indicator Panel for directions
on how to set up an indicator.