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.

Mouse over chart captions to display trading signals.

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.

Related Topics

Title	Description
True Range	Welles Wilder's True Range adjusts the normal High - Low daily range when there is an opening gap.
Typical Price	Typical price, calculated as (High Low Close) / 3, is a useful filter for moving average systems.
Weighted Close	Weighted Close, calculated as (High Low Close * 2 ) / 4, is a simple but effective filter for moving average systems.