Weighted Close Price
The Close-With-Extra-Emphasis That Gives More Weight to the Final Print
The Weighted Close Price is a simple but clever average that puts extra emphasis on the closing price while still incorporating the session's range. By calculating (High + Low + Close + Close) / 4 – or equivalently (High + Low + 2×Close) / 4 – it gives the close twice the weight of high and low. The result is a smoother line than raw closes but one that's more responsive to where the market actually settled. It's a favorite input for indicators needing a close-biased yet range-aware price series, and a subtle upgrade for anyone tired of plain close noise.
The Straightforward Formula
Easy math:
Weighted Close = \frac{High + Low + 2 \times Close}{4}
Or equivalently: (High + Low + Close + Close) / 4 – double-counting the close.
Each bar gets a single value biased toward where trading finished.
Why Weight the Close More?
Advantages over alternatives:
- Close emphasis: Many believe close is most important – settlement price matters.
- Smoother than raw close: Incorporates range, reduces single-tick spikes.
- Less extreme than close: High/low pull it toward session center.
- Better than Typical Price: When you want close to lead more than high/low.
Interpreting the Line
Practical reads:
- Price > rising Weighted Close: Close in upper range – bullish intraday control.
- Price < falling Weighted Close: Close in lower range – bearish pressure.
- Weighted Close flattening: Consolidation – balanced but indecisive.
- As pivot: Often soft support/resistance for very short-term moves.
Plot as line – smoother close proxy with range awareness.
Pro Applications
Where it adds value:
- Smoother close series: Use instead of raw close for MAs or oscillators.
- Indicator input: Some strategies prefer Weighted Close for momentum tools.
- Mean reversion: Price far from Weighted Close line → potential snap zone.
- Intraday bias: Quick read on whether close dominated the session.
Classic in some older systems – gives close the respect many traders feel it deserves.
Strengths and Natural Limits
The Wins
- Close-biased yet range-aware – best of both worlds.
- Reduces close noise while keeping settlement focus.
- Simple alternative to raw close series.
- Useful smoothing for short-term analysis.
The Gotchas
- Still influenced by close spikes – less balanced than Typical Price.
- No volume consideration.
- Soft levels – rarely strong S/R alone.
- Backward-looking per bar.
Your Weighted Close Quick-Start
- Plot the line on any chart.
- Compare price position for intraday bias.
- Use as smoother close input for indicators.
- Watch for mean reversion around the line.
- Combine with volume tools for fuller picture.
- Great middle ground between close and full range averages.
Key Takeaways
Weighted Close = (H + L + 2×C)/4 – close gets double vote.
Smoother than raw close, more close-focused than Typical Price.
Perfect when you want settlement emphasis with range smoothing.
Price above/below shows short-term control; line direction hints bias.
Simple upgrade – use for cleaner short-term analysis or indicator inputs. Stay weighted and trade balanced!
Weighted Close Price
The Close-With-Extra-Emphasis That Gives More Weight to the Final Print
The Weighted Close Price is a simple but clever average that puts extra emphasis on the closing price while still incorporating the session's range. By calculating (High + Low + Close + Close) / 4 – or equivalently (High + Low + 2×Close) / 4 – it gives the close twice the weight of high and low. The result is a smoother line than raw closes but one that's more responsive to where the market actually settled. It's a favorite input for indicators needing a close-biased yet range-aware price series, and a subtle upgrade for anyone tired of plain close noise.
Table of Contents
The Straightforward Formula
Easy math:
Weighted Close = \frac{High + Low + 2 \times Close}{4}
Or equivalently: (High + Low + Close + Close) / 4 – double-counting the close.
Each bar gets a single value biased toward where trading finished.
Why Weight the Close More?
Advantages over alternatives:
- Close emphasis: Many believe close is most important – settlement price matters.
- Smoother than raw close: Incorporates range, reduces single-tick spikes.
- Less extreme than close: High/low pull it toward session center.
- Better than Typical Price: When you want close to lead more than high/low.
Interpreting the Line
Practical reads:
- Price > rising Weighted Close: Close in upper range – bullish intraday control.
- Price < falling Weighted Close: Close in lower range – bearish pressure.
- Weighted Close flattening: Consolidation – balanced but indecisive.
- As pivot: Often soft support/resistance for very short-term moves.
Plot as line – smoother close proxy with range awareness.
Pro Applications
Where it adds value:
- Smoother close series: Use instead of raw close for MAs or oscillators.
- Indicator input: Some strategies prefer Weighted Close for momentum tools.
- Mean reversion: Price far from Weighted Close line → potential snap zone.
- Intraday bias: Quick read on whether close dominated the session.
Classic in some older systems – gives close the respect many traders feel it deserves.
Strengths and Natural Limits
The Wins
- Close-biased yet range-aware – best of both worlds.
- Reduces close noise while keeping settlement focus.
- Simple alternative to raw close series.
- Useful smoothing for short-term analysis.
The Gotchas
- Still influenced by close spikes – less balanced than Typical Price.
- No volume consideration.
- Soft levels – rarely strong S/R alone.
- Backward-looking per bar.
Your Weighted Close Quick-Start
- Plot the line on any chart.
- Compare price position for intraday bias.
- Use as smoother close input for indicators.
- Watch for mean reversion around the line.
- Combine with volume tools for fuller picture.
- Great middle ground between close and full range averages.
Key Takeaways
Weighted Close = (H + L + 2×C)/4 – close gets double vote.
Smoother than raw close, more close-focused than Typical Price.
Perfect when you want settlement emphasis with range smoothing.
Price above/below shows short-term control; line direction hints bias.
Simple upgrade – use for cleaner short-term analysis or indicator inputs. Stay weighted and trade balanced!
Related Terms
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