Typical Price (HLC3) Indicator Explained

HLC3 (Typical Price) averages high, low, and close — giving the close a seat at the table alongside the range. It's the canonical 'representative price' of a bar and is already the internal input of CCI, MFI, and VWAP.

How It Works

• (High + low + close) / 3 per bar.
• The close's inclusion tilts the value toward where the bar actually settled.
• Available as a standalone series or a source input for other indicators.

How to Trade It

Use HLC3 as the source for averages and oscillators when you want settlement-aware smoothing, or compare close vs HLC3 directly: a close persistently above typical price means bars keep finishing strong — a subtle but real momentum tell.

Building It in Setup.Cash

Add Typical Price (HLC3) in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. See HL2 and OHLC4 for the other composite sources. For the full category overview, see the advanced trend library guide.

Trend tools reward patience: pick one, pair it with a volatility or regime filter, and backtest before trading it live.