What Is a Close Price?
A close price indicates an asset’s last traded value within a given time period, usually a day. It is used by traders to help determine long-term trends.
What Is Knowing the Close Price Useful For?
The close price provides traders with a broader view of an asset since it buffers random fluctuations to establish longer-term trends. For example, a weekly close price below the previous close for eight consecutive times typically means the market is not improving. A week is generally considered long enough for a close price to establish a trend.