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Indicators A ~ Z > V ~ Z > Weighted Close
Contents > V ~ Z > Weighted Close
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Weighted Close

Weighted Close is similar to Typical Price - the only difference being that the weighted close, as the name implies, place greater weighting on closing price. Both indicators approximate the average price traded for a period and are used as filters in moving average systems.

Weighted Close is calculated as:       (High + Low + Close * 2 ) / 4

Weighted Close is featured in Steven Achelis' book, Technical Analysis A-Z.

Example

Intel shown with Weighted Close Weighted Close and EMA 21 day exponential moving average.

Intel Weighted Close

Mouse over chart captions to display trading signals.

Using the Single Moving Average System:

Long signals [L] are generated when the weighted close crosses to above the moving average.

Short signals [S] occur when the weighted close crosses to below the moving average.

Observe how the weighted close filter eliminates a number of whipsaws (where price crosses the re-crosses the moving average).

Setup

See Indicator Panel for directions on how to set up an indicator.



 
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