Median Price (MEDPRICE)

Overview

The Median Price indicator represents one of the simplest yet most effective approaches to price analysis, calculating the midpoint of each period's trading range using the formula (High + Low) / 2. This calculation method creates a single line that captures the essence of price movement without the noise and volatility often associated with closing prices. By focusing on the extremes of each bar rather than where price happened to close, MEDPRICE provides a more stable representation of market value that's particularly useful for identifying underlying trends and filtering out false signals caused by end-of-period manipulation or random fluctuations.

When applied with a moving average period, the Median Price indicator becomes even more powerful, creating a smoothed line that represents the moving average of daily midpoints. This approach offers distinct advantages over traditional closing price moving averages: it's less susceptible to gaps, more resistant to outliers, and provides a clearer picture of the market's true direction. The indicator excels in trending markets where it acts as a dynamic centerline - price trading above suggests bullish sentiment, while trading below indicates bearish pressure. Its simplicity makes it an ideal building block for more complex trading systems or as a clean reference point for price action analysis.

Interpretation & Trading Signals

Example Usage

Code examples will be available once the Rust implementation is complete.