Median Price
Median Price is merely the mid-point of the trading range for each period.
Calculated as: (High + Low ) / 2
The line is plotted on the price chart and can be used as a filter for trend indicators.
Median Price is featured in Steven Achelis' book, Technical Analysis A-Z.
Example
Coca Cola is plotted with
21-day exponential
moving average, and
daily median price.
A Single Moving Average System is used with median price as a filter. Long [L] and short [S] trades are signaled when median price crosses the moving average. The median price filter eliminates an unprofitable trade at [1] but delays the signal by an extra day at [2].
Setup
See Indicator Panel for directions on how to set up a median price on the price chart. Edit Indicator Settings to alter the default settings.
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