Building a Moving Average from Weighted OHLC Prices

Summary

This indicator lets the user construct an input price series by combining the open, high, low, and close prices with four configurable coefficients, then applies a moving average to that series. The approach extends conventional moving-average inputs by allowing different relative emphasis on the four main OHLC fields. The document identifies the coefficients as indicator parameters and describes the result as a weighted price used for averaging.

The source provides a formula, but it appears to contain a denominator error: the open coefficient is repeated and the close coefficient is omitted from the denominator. That discrepancy should be checked against the implementation before relying on the stated calculation. The document gives no example parameter settings, comparisons with standard moving averages, trading rules, or performance results, so it explains an indicator construction rather than establishing its usefulness as a signal.

Key ideas

• The indicator forms a custom price input from open, high, low, and close values.
• Four coefficients control the relative contribution of each OHLC price.
• A moving average is calculated from the resulting composite price series.
• The printed formula's denominator repeats the open coefficient and appears inconsistent with the described four weights.
• No trading rules or performance evidence are provided.

Tags

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