Weighted Close - Technical Indicator

Weighted Close Definition

The weighted close indicator calculates the average price change for a security and places more emphasis on the closing price.  The weighted close can be plotted as a smooth line directly on the price chart, but it should not be used to trigger buy or sell signals.  However, the weighted close does provide a clear indication of the primary trend.

Weighted Close Formula

The weighted close is calculated by multiplying the close by 2, then adding the high and low and dividing the sum of these components by 4. 

((Close * 2) + High + Low) / 4

Weighted Close Charting Example

Notice how the weighted close trended higher as the price continued upwards.

Weighted Close

Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

Day Trading Simulator

Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for...

Send this article to a friend.

Enter multiple addresses on separate lines or separate them with commas.