Typical price
Encyclopedia
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.
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.
Pivot point
A pivot point is a price level of significance in technical analysis of a financial market that is used by traders as a predictive indicator of market movement. A pivot point is calculated as an average of significant prices from the performance of a market in the prior trading period...
) refers to the arithmetic average of the high, low, and closing prices for a given period.
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.