What Is Typical Price (TP)?
Typical Price is the average of high, low, and close for each bar, providing a smoothed price line that reduces single-price noise.
Quick Answer
Typical Price is the average of high, low, and close for each bar, providing a smoothed price line that reduces single-price noise.
What Does TP Measure?
Typical Price (also written HLC/3) averages the high, low, and close of each bar into a single value. It represents a fair midpoint of the bar's trading range rather than relying solely on the closing price. Typical Price is used as the basis for indicators like CCI and VWAP, and can be plotted as a standalone overlay to visualize a smoothed price path. On VaultCharts desktop charts, Typical Price can be added as a free overlay to compare against close-based moving averages.
Typical Price = (High + Low + Close) / 3How to Read TP
- 1Typical Price smooths out close-only noise from wicks and spikes
- 2Price above Typical Price suggests bullish intrabar bias
- 3Typical Price converges with close in narrow-range bars
- 4Useful as input for volume-weighted calculations like VWAP
How to Use TP in Trading
Common Mistakes to Avoid
Use TP in VaultCharts
VaultCharts includes Typical Price with customizable settings. Combine it with our automated pattern detection and trade signals for better analysis.