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Many investors track ‘typical price‘ of the stock. Typical price is the average of high, low and the closing price of a particular session. It gives equal weightage to all three prices.
The closing price is more important because most studies are performed on the closing price basis of the stock. In the ‘Weighted close’ indicator, you can define a weightage for the closing price.
For example, if the weightage is 2, the indicator will give 2 times more weightage to the closing price while calculating the average of all three prices.
If the weightage close indicator is rising, it is considered as bullish and if it is falling, it is bearish.
The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.
The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.
This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.