Median Price Indicator

The Median Price is an indicator which, when used in conjunction with its Exponential Moving Average, provides potential buy/sell points on a stock price chart.

Median Price

The Median Price is an indicator which, when used in conjunction with its Exponential Moving Average, provides potential buy/sell points on a stock price chart.

 


Median Price Calculation

The Median Price line is calculated as the average of each day's high and low prices. An Exponential Moving Average of the Median Plot is used to smooth the indicator.

The Median Price indicator requires a single parameter which is the period for the Median Price EMA (which serves as a signal line).

    Median Price = (High + Low) / 2

    Signal Line = EMA(Median Price, n)



Application of Median Price

Buy signals are issued when the Median Price move upward through the signal line (EMA of the Median Price) and sell signals are issued when the median prices falls below the signal line.

Price chart with Median Price overlay

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