Definitions
In plain terms
It creates one representative price input per finalized bar for CCI and other indicators.
Technical
The three fields must share instrument, timestamp, adjustment basis, currency, finalization, and validated OHLC consistency.
Scope
It is a convention and is not the volume-weighted average price or actual executed average.
Formula
Typical Price = (H + L + C) / 3TP_t=\frac{H_t+L_t+C_t}{3}| Symbol | Meaning | Unit |
|---|---|---|
H_t | bar high | price |
L_t | bar low | price |
C_t | bar close | price |
Output unit: price
Examples
- A governed lesson calculates or identifies Typical Price only after its inputs, window, state, scale, and edge cases are declared.
Common misconceptions
- It is a convention and is not the volume-weighted average price or actual executed average.
Concept relationships
Prerequisites
Where this concept is used
Evidence and governance
- Commodity Channel Index TA-Lib · first party technical publication
Supports: preferred label, short definition, technical definition, formula
Limits: The common 0.015 constant is a convention, and zero-deviation or mixed-adjustment inputs require explicit handling.
- Reviewed by
- fintech-builder-batch-008
- Last reviewed
- 2026-07-29
- Next review
- 2027-07-29
- Record status
- published