Day Typical Price Indicator
Select Equity |
Day Typical Price In A Nutshell
Using the day typical price can allow you to begin plotting ranges and areas where price wants to be on average. Of course there are many different indicators and tools out there already that help you find the range, but this data set could help you pinpoint where you think price should be even more.
Day typical price is taking the average of the price for that day, which can be used in many different ways. First, knowing the average daily price can help for mid to long term investors, as they may being to pick up on price patterns.
Closer Look at Day Typical Price
First, taking the average price of the day for the last 30 days can give you a picture of where the stock has been. Taking that a stretching it to 60 and 90 days can allow you to draw trends. This is similar to the simple moving averages, giving you points where you could implement mean reversion. A disadvantage that this has is it utilizes past data and does not have an way of looking forward. Technically speaking, you many want to find support and resistance levels, but it is difficult to have forward looking data with price average.
Secondly, you can use this data to possible find standard deviations and other sets that can paint another type of picture. Be sure to not get caught up in the past because if you are looking to invest, you want to see where the company is going to go, not where it has been. Many people get romantic about the past, which serves only so much purpose in your research.
Lastly, price only tells so much of the story, because there are many different factors that generate the current stock price. You must look under the hood to find what is driving the average prices for the day and know if it is going to affect it going forward. Again, be sure to keep looking forward because you want the average price to grow.
Daily typical price certainly has its place, but should be used in conjunction with your already existing strategies. Implement it with what you are already doing and see if it brings you any value. Reach out to investment communities and see if they are using it and if it is worth the time. When in doubt, test your ideas on a demo account and go from there, that way you build up confidence.
Other Indicators
All Technical Analysis
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectOther Consideration for investing
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |