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In financial trading, '''typical price''' (sometimes called the [[pivot point]]) refers to the arithmetic average of the high, low, and closing prices for a given period.<ref>[http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:commodity_channel_in Calculation of Typical Price while Calculating Commodities Channel Index (CCI)]</ref>


<math>\text{Typical Price} = \frac{H + L + C}{3}</math>


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For example, let's consider a period of one day. If the high for that day was 1.2200, the low was 1.2080, and the closing price was 1.2150, then the typical price for that day would be:
 
TP = (1.2200 + 1.2080 + 1.2150)/3 = 1.2143.
 
==References==
{{reflist}}
 
[[Category:Stock market]]
[[Category:Technical analysis]]

Revision as of 17:16, 6 January 2014

In financial trading, typical price (sometimes called the pivot point) refers to the arithmetic average of the high, low, and closing prices for a given period.[1]

Typical Price=H+L+C3

For example, let's consider a period of one day. If the high for that day was 1.2200, the low was 1.2080, and the closing price was 1.2150, then the typical price for that day would be:

TP = (1.2200 + 1.2080 + 1.2150)/3 = 1.2143.

References

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