# Weighted Close

## What Is the Weighted Close Indicator?

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 [Typical Price indicator](https://chartschool.stockcharts.com/table-of-contents/technical-indicators-and-overlays/technical-indicators/typical-price).

## How To Calculate the Weighted Close Indicator

The Weighted Close averages the high, low, and close but gives more weight to the closing price. The formula is as follows:

$$
Weighted\nobreakspace Close = ((High + Low + (Close \* 2)) / 4
$$

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 [moving average](https://chartschool.stockcharts.com/table-of-contents/trading-strategies-and-models/trading-strategies/moving-average-trading-strategies/how-to-trade-price-to-moving-average-crossovers), 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.
