The Weighted Close indicator measures an average of every day's price. Its name stems from the fact that twice as much weight is given to the closing price as is given to the sum of the daily high and daily low.
Use the Weighted Close anywhere a closing price or other single price field could be used. For instance, you may compare it to a moving average of its value to define when a security is trending downward or upward.
The Weighted Close gives a simple view of the day as well as other price adjustment functions. It can be used to smooth out some of the inconstancy of a chart of closing prices, as it comprises information for the whole trading day. A Weighted Close chart comprises the simplicity of the line chart with the scope of a bar chart, by fixing a single point for each day that includes the high, low, and closing price.
(Daily Close * 2) + Daily High + Daily Low / 4