Median Price (MP) Indicator
The Noise-Reducing Midpoint That Reveals True Intrabar Balance
The Median Price (MP) is the simplest way to cut through intrabar chaos: just take the midpoint between the high and low of each period. No close bias, no end-of-session spikes – pure (High + Low)/2. It gives a clean, centered snapshot of where price actually traded during the bar, smoothing out twitchy closes and last-minute noise. Often called HL2 in platforms, it's the go-to 'fair' price for feeding into moving averages, oscillators, or bands when you want steadier signals without the distortion of raw closes.
The Ultra-Simple Formula
Dead easy:
Median Price = \frac{High + Low}{2}
One value per bar – the exact midpoint of the range.
Why Median Price Beats Raw Close
Big advantages:
- Noise reduction: Ignores erratic close prints and manipulation spikes.
- True center: Represents where most trading happened, not just settlement.
- Gap softening: Overnight gaps affect midpoint less dramatically.
- Parameter-free: No tuning needed – pure and consistent.
Practical Interpretations
What to watch:
- Price > rising MP: Close in upper range – bullish intrabar control.
- Price < falling MP: Close in lower range – bearish pressure.
- MP flattening: Price consolidating around mid-range.
- MP as pivot: Often soft support/resistance for very short-term swings.
Plot as line – calmer alternative to close for trend spotting.
Pro Applications
Where it really shines:
- Smoother MAs: EMA/SMA of MP tracks core trend better on noisy assets.
- Cleaner oscillators: RSI/Stochastic/CCI on MP → fewer false extremes.
- Band anchors: Bollinger/Keltner around MP align with swing centers.
- Mean reversion: Price far from MP line → potential snap-back zone.
Many pros switch indicator inputs to HL2/MP for steadier signals.
Strategy Ideas
Simple setups:
- Smoothed trend: 20-EMA of MP → long above (upsloping), short below.
- Band pullback: Bollinger on MP → enter trend direction on band tag + return inside.
- Divergence: RSI on MP shows cleaner hidden divergences.
Strengths and Natural Limits
The Wins
- Zero parameters – pure, unbiased midpoint.
- Built-in noise reduction vs raw close.
- Excellent input for smoother indicators and bands.
- Ignores manipulative close prints.
The Gotchas
- Ignores close entirely – misses settlement sentiment.
- Big wicks still skew midpoint.
- Soft levels – needs confirmation for S/R.
- Backward-looking per bar.
Your Median Price Quick-Start
- Plot MP (HL2) line on any chart.
- Switch oscillator/MA inputs to Median Price.
- Watch price vs MP for intrabar bias.
- Use as centerline for custom bands.
- Combine with volume tools for fuller picture.
- Great noise filter for volatile assets.
Key Takeaways
Median Price = (High + Low)/2 – pure intrabar midpoint.
Smoother than close, ignores end-of-session noise.
Perfect input for MAs, oscillators, and bands needing cleaner data.
Price above/below MP shows short-term range control.
Simple upgrade – reduce noise and see the core price action clearer. Stay median and trade steady!
Median Price (MP) Indicator
The Noise-Reducing Midpoint That Reveals True Intrabar Balance
The Median Price (MP) is the simplest way to cut through intrabar chaos: just take the midpoint between the high and low of each period. No close bias, no end-of-session spikes – pure (High + Low)/2. It gives a clean, centered snapshot of where price actually traded during the bar, smoothing out twitchy closes and last-minute noise. Often called HL2 in platforms, it's the go-to 'fair' price for feeding into moving averages, oscillators, or bands when you want steadier signals without the distortion of raw closes.
Table of Contents
The Ultra-Simple Formula
Dead easy:
Median Price = \frac{High + Low}{2}
One value per bar – the exact midpoint of the range.
Why Median Price Beats Raw Close
Big advantages:
- Noise reduction: Ignores erratic close prints and manipulation spikes.
- True center: Represents where most trading happened, not just settlement.
- Gap softening: Overnight gaps affect midpoint less dramatically.
- Parameter-free: No tuning needed – pure and consistent.
Practical Interpretations
What to watch:
- Price > rising MP: Close in upper range – bullish intrabar control.
- Price < falling MP: Close in lower range – bearish pressure.
- MP flattening: Price consolidating around mid-range.
- MP as pivot: Often soft support/resistance for very short-term swings.
Plot as line – calmer alternative to close for trend spotting.
Pro Applications
Where it really shines:
- Smoother MAs: EMA/SMA of MP tracks core trend better on noisy assets.
- Cleaner oscillators: RSI/Stochastic/CCI on MP → fewer false extremes.
- Band anchors: Bollinger/Keltner around MP align with swing centers.
- Mean reversion: Price far from MP line → potential snap-back zone.
Many pros switch indicator inputs to HL2/MP for steadier signals.
Strategy Ideas
Simple setups:
- Smoothed trend: 20-EMA of MP → long above (upsloping), short below.
- Band pullback: Bollinger on MP → enter trend direction on band tag + return inside.
- Divergence: RSI on MP shows cleaner hidden divergences.
Strengths and Natural Limits
The Wins
- Zero parameters – pure, unbiased midpoint.
- Built-in noise reduction vs raw close.
- Excellent input for smoother indicators and bands.
- Ignores manipulative close prints.
The Gotchas
- Ignores close entirely – misses settlement sentiment.
- Big wicks still skew midpoint.
- Soft levels – needs confirmation for S/R.
- Backward-looking per bar.
Your Median Price Quick-Start
- Plot MP (HL2) line on any chart.
- Switch oscillator/MA inputs to Median Price.
- Watch price vs MP for intrabar bias.
- Use as centerline for custom bands.
- Combine with volume tools for fuller picture.
- Great noise filter for volatile assets.
Key Takeaways
Median Price = (High + Low)/2 – pure intrabar midpoint.
Smoother than close, ignores end-of-session noise.
Perfect input for MAs, oscillators, and bands needing cleaner data.
Price above/below MP shows short-term range control.
Simple upgrade – reduce noise and see the core price action clearer. Stay median and trade steady!
Related Terms
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