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The Typical Price function measures the average of the high, low, and closing prices for the day using a simple, single-line plot. The ordinary price gives a simplified view of the day trading prices for as well as it happens with other price-adjustment functions. You can use it for smoothing out some of the inconstancy of the closing price because it comprises information for the whole trading day and not only the result of the day's end. The Typical Price indicator is measured by adding the high, low, and closing prices together, and then dividing by three.
Typical Price = ( High + Low + Close / 3 )
The Typical Price is a milestone of the Money Flow Index. It can be used in any place a closing price or other single price field would be used. For instance, it could be compared to a moving average of its value to define when a security is trending downward or upward.