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, 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.
Typical Price is mostly used as a component in various technical studies:
Pivot Point,
Commodity channel index The commodity channel index (CCI) is an oscillator originally introduced by Donald Lambert in 1980.
Since its introduction, the indicator has grown in popularity and is now a very common tool for traders in identifying cyclical trends not only in c ...
(CCI),
Money Flow Index (MFI), Volume Weighted Average (VWAP).
Typical Price
in the MarketVolume's technical analysis guide
References
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Stock market
Technical analysis