Typical Price

 

Typical Price is an approximate arithmetic average. Some people call this a Pivot point

How to calculate:

High: H

Low: L

Some people use this Open: O      TP= (H+L+O+C)/4

Close: C

The formula is as below:

TP= (H+L+C)/3

Strategy:

Combine this with a moving average.

Signal: Every time TP crosses above MA it gives us a buy signal

A TP crossing below the MA produces a sell signal.

Active or passive investment

Active or passive investment. 

Which one is better?

I think we should have a mix.

Actually, this is the best way to have and manage a very diversified portfolio. 

We can have a core long-term investment including a mix of different assets like tech, metal base, travel, transport, etc.

And then for the active part of the portfolio monitor and analyze a few markets based on what is trending. The active part is short-term and will change from time to time. For example, if you have tech stock sticks as active investment and after a few months Tech reaches a stop then we may trade other markets like travel, etc.

This is very similar to the core-satellite strategy.