Close Value

Introduction:

The Close Value is the final price of a trading session and is one of the most important values in technical analysis. It reflects market consensus and is widely used for calculating indicators, trend analysis, and entry/exit strategies.

How does it work?

Close_t = P_close

Where:

• P_close is the last traded price of the asset for the given period.

Interpretation of Close Value:

1. Trend Strength: If the closing price is near the session high, it suggests bullish sentiment. A close near the low suggests bearish momentum.

2. Gap Trading Analysis: A large gap between the close and the previous session's close signals strong momentum.

3. Indicator Calculations: Moving Averages, RSI, and MACD often rely on closing prices for accurate signals.

Practical Applications:

1. Daily Trading Analysis

2. Confirming Trading Signals

3. Setting Price Targets