Build Moving Averages from Custom OHLC Price Weights

Summary

This moving-average modification lets a trader define the input price as a weighted combination of open, high, low, and close rather than choosing only from standard price constants. Four coefficients determine each component’s contribution; components with nonpositive coefficients are excluded, and the remaining weights are normalized to form the individual price series used by the moving average.

The indicator retains conventional settings for the averaging period, chart shift, and averaging method, including simple, exponential, smoothed, and linear weighted averages. The examples show how to create an open-only input, a weighted-price input, or a custom blend that emphasizes selected OHLC components. This expands the choices for technical analysis, but the description supplies no comparison of these price blends, parameter guidance, or evidence that any combination improves signals or returns. Users must choose and evaluate weights for their own application.

Key ideas

• The indicator calculates moving averages from a custom weighted combination of OHLC prices.
• Each OHLC component has its own coefficient, and nonpositive coefficients are omitted.
• The available averaging methods include simple, exponential, smoothed, and linear weighted averages.
• The examples illustrate open-only, weighted-price, and custom OHLC blends.
• No evidence is provided that a particular set of coefficients improves trading performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.