Overview

The Weighted Close formula calculates the average value of daily prices. The only difference between Typical Price and the Weighted Close is that the closing price has extra weight, and is considered the most important price. The Weighted Close can be used as a filter for identifying trends, and can also be used as a daily average price, which is very useful if you want a more simple view of prices.

Note
We recommend that you read Using Financial Formulas before proceeding any further. Using Financial Formulas provides a detailed explanation on how to use formulas, and also explains the various options available to you when applying a formula.

Figure 1: The Weighted Close indicator, along with Hi, Low and Close prices.

Applying a Weighted Close

All formulas are calculated using the FormulaFinancial method, which accepts the following types of arguments: a formula name; input value(s); output value(s), and parameter(s) that are specific to the type of formula being applied.

Also, before applying the FormulaFinancial method, make sure that all data points have their XValue property set, and that their series' XValueIndexedproperty has been set to false.

The following table indicates what sort of FormulaFinancial method arguments to use when calculating a Weighted Close, and also supplies a description of what these parameters mean:

A line chart is a good choice when displaying a weighted close series.

Financial Interpretation: This indicator is a good solution if we want to exchange a stock chart with a single line chart. The Weighted Close indicator merely calculates the daily weighted average of Hi, Low and Close prices.

Calculation: The Weighted Close is calculated using the following formula:

Weighted Close is a daily weighted average of high, low and close prices.

Example

This example demonstrates how to calculate the weighted close.

Visual Basic	Copy Code
Imports Dundas.Charting.WebControl ... With Chart1.DataManipulator ' Calculates Weighted Close. .FormulaFinancial(FinancialFormula.WeightedClose,"Series1:Y,Series1:Y2,Series1:Y4","Series2:Y") End With

C#	Copy Code
using Dundas.Charting.WebControl; ... // Calculates Weighted Close. Chart1.DataManipulator.FormulaFinancial(FinancialFormula.WeightedClose, "Series1:Y,Series1:Y2,Series1:Y4","Series2:Y");

See Also