Weighted Close
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Last updated
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The Weighted Close indicator helps to identify a prevailing trend. It's an average of a period’s high, low, and close, with the close receiving double weight given its importance of mark-to-market. Weighted Close is plotted as a line that can be displayed in a separate panel or overlaid on the price chart, similar to the .
The Weighted Close averages the high, low, and close but gives more weight to the closing price. The formula is as follows:
There are several ways to apply the Weighted Close to your trading. You can use it as a standalone indicator or with other trend-following indicators. For example, if you're using the Weighted Close with a , consider it a buy signal when it crosses above the moving average. Conversely, when the Weighted Close crosses below a moving average, consider it a sell signal.