Typical Price Bias

Typical Price Bias (TPB) is a normalized bias oscillator designed to quantify closing pressure relative to a bar’s typical price (HL2 = (High + Low)/2), while reducing noise through selectable moving-average smoothing.

What it measures

For each length, TPB computes:

Bias=( MA(close)−MA(HL2) ) / HL2t−1

This represents the smoothed tendency for price to close above or below typical price, scaled by the prior bar’s HL2 to produce a stable, percent-like oscillator across different markets.

Plots

Fast Bias (fast length): responsive bias component used to observe short-term pressure.

Baseline (slow length): slower bias component used as a regime/trend context line.

Zero line: neutral boundary. Above zero = bullish close bias; below zero = bearish close bias.

Visual encoding

Fast Bias coloring reflects:

Sign (above/below zero), and

Slope (increasing vs decreasing), helping you visually separate strengthening vs weakening bias.

Practical interpretation

Regime: Baseline > 0 suggests bullish conditions; Baseline < 0 suggests bearish conditions.

Confirmation: Fast Bias staying on the same side of zero as the Baseline supports continuation.

Early warning: Fast Bias turning down (while still above zero) can precede weakening momentum; similarly for upside turns below zero.

Notes

This indicator is not a complete trading system; it is best used as a filter/confirmation tool alongside structure, trend, or volatility context.