# Typical Price

## What Is the Typical Price Indicator?

The Typical Price indicator represents a trading bar's average price. When applied to a chart, Typical Price is plotted as a line that can be displayed in a panel or overlaid on the price chart. Viewing the average price as a line makes it easier to spot price trends and reversals.&#x20;

## Calculating the Typical Price Indicator

If you're familiar with the [Money Flow Index](https://chartschool.stockcharts.com/table-of-contents/technical-indicators-and-overlays/technical-indicators/money-flow-index-mfi) and the [Commodity Channel Index](https://chartschool.stockcharts.com/table-of-contents/technical-indicators-and-overlays/technical-indicators/commodity-channel-index-cci), you may recognize the Typical Price since it's used to calculate these two indicators.

The Typical Price calculation is simple. It averages the high, low, and close.

The formula is below.

$$
Typical\nobreakspace Price = (High + Low + Close)/3
$$

## Using With StockChartsACP

The Typical Price indicator is a standard indicator in StockChartsACP.  The default setting is 14 periods, but this indicator setting can be changed. You can also overlay several indicators on the Typical Price.&#x20;

The chart below shows an example of the Typical Price (red line) with a 15-period [simple moving average](https://chartschool.stockcharts.com/table-of-contents/technical-indicators-and-overlays/technical-overlays/moving-averages-simple-and-exponential) (SMA) overlay (blue line). Note that generally, price crosses the Typical Price earlier than Typical Price and SMA crossovers. This can prevent you from entering or exiting positions early but at the risk of a lower return.

<figure><img src="https://436553459-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FERtrZrZOhufFzk6ZQO4B%2Fuploads%2FMrRbZcBm8w9dC6uGfBS1%2Ftypical-price.png?alt=media&#x26;token=e253f1b6-db7f-4988-96f7-2f8c964f2a62" alt="Chart from StockCharts.com  displaying the Typical Price indicator with a moving average crossover."><figcaption><p>Typical Price with a simple moving average overlay.</p></figcaption></figure>


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