Definition of 'HLC/3'
The HLC stands for High, Low, Close and the /3 divides the result by 3 to give you the average.
Some traders feel that this average is more representative of the true value of the price of a bar/candle in a chart. This is often used in place of the closing price when calculating moving averages such as the SMA, WMA, and EMA
Other similar alternatives to the HLC/3 formula that are popular are HL/2 and OHLC/4.
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