ES Wednesday 10-26-16 : Hot Topic


Search Dictionary

Definition of 'HLC/3'

Average of High, Low, and Close for a bar/candle.

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.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.