The Weighted Close
indicator is the average of a day's close, high and low with extra
weight being given to the closing price hence the name, making it
similar to the Median Price indicator. The Weighted Close line is
as easy to read as a line chart but gives the same sort of feel
as a bar chart.
To calculate the Weighted
Close indicator multiply the close by two, add the high and the
low to it, then divide the result by four. Day trading with the
weighted close is obviously restricted to using the weighted close
to guess whether tomorrow is up or down. Rich day traders, by the
way, never guess.