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.