The Typical Price indicator is simply an average of the high, low and close. The Typical Price indicator provides a simple, single-line plot of the period’s average price. Some traders use the Typical Price rather than the closing price when creating moving average penetration systems. Typical Price is another approximation of average price for each period and can be used as a filter for moving average systems
For day trading, the Typical Price helps you to get a clear view of what the main thrust of the day’s action were.