The Weighted Close indicator is an average of each period’s price. It gets its name from the fact that extra weight is given to the closing price. It places greater weighting on closing price. Both indicators approximate the average price traded for a period and is used as filters in moving average systems.
The weighted close study is another way of viewing the price data. It places a greater emphasis on the closing price rather than the high or low. This process creates a single line chart. It provides clear and concise picture of the market