Average Price (OHLC4) Indicator Explained

OHLC4 (Average Price) averages all four bar values — open, high, low, close. Including the open makes it the most gap-aware of the composite prices: a bar that gaps and fades looks very different through OHLC4 than through close alone.

How It Works

• (Open + high + low + close) / 4 per bar.
• Gaps between sessions are partially absorbed into the value.
• It's the same price basis Heikin Ashi uses for its candle bodies.

How to Trade It

OHLC4 is the smoothest source input for indicators on gappy markets (stocks, weekend-gapping crypto CFDs). Run your moving averages and oscillators on OHLC4 when session gaps keep faking your close-based signals.

Building It in Setup.Cash

Add Average Price (OHLC4) 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 Heikin Ashi, which is built on this price. 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.