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Median Price
Definition
The Median Price study is a straightforward calculation that takes the mid-point between the highest and lowest prices of each trading bar and plots it as a simple moving average. By focusing on the middle ground between extremes, this study provides a balanced view of price action.
Suggested Trading Use
When you're looking for a simplified take on price action without the noise of extreme highs and lows, the Median Price study is your go-to. Use it to get a clearer picture of the market's general direction. Since it's an average of mid-points, it can smooth out random price spikes and dips, helping you focus on the underlying trend. It works well for initial assessments of market direction and can be a helpful tool for setting entry and exit points.