Median Price

Name Type Prerequisite Use Cases
Median Price (MP) Trend/Benchmark OHLC Data Identifies the midpoint of a bar's range, often used as an input for oscillators.

Definition

Median Price is the average of the High and Low prices for a single period. It represents the midpoint of the trading range for that bar.

Mathematical Equation

\[ \text{Median Price} = \frac{\text{High} + \text{Low}}{2} \]

Special cases

  • Maximum possible value: Unbounded
  • Minimum possible value: 0
  • Behavior: Follows the price, showing the midpoint between the high and low of each period.

Visualization

Median Price

Trading Significance

  1. Midpoint: Identifies the center of the trading activity for the period.

  2. Simplification: A simpler view of price action than OHLC bars.