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Closing price

The last traded price of a period; the single number most indicators and most traders treat as the period's verdict.

The close is the final print of a bar, session or contract period. It carries more weight than the other three ohlc values because it is where participants were willing to leave their positions overnight or into the next bar.

Most indicators default to closes. A breakout is often only considered valid on a closing basis, meaning price must finish beyond a level rather than merely poke through it during the bar. That rule filters some fakeouts but delays entry and sometimes gives up a large part of the move.

For stocks the official close is set by a closing auction, which is why market-on-close orders exist and why the printed close can differ from the last price you saw on a chart of continuous trading.

Related: ohlc, market-on-close, breakout

See it drawn

Original diagrams for the ideas on this page. Illustrative, not real market data.

Breakout and retestPrice stalls under one level, pushes above it, comes back to touch it from above, then continues higher.pricetimeold resistancenow support1price keeps stalling2breaks above3pulls back and retests it4and carries on
Breakout and retest. Price stalls under the same level several times, pushes above it, then drops back to touch it from above before carrying on. That touch is the retest, where the old ceiling is tried as a floor. A break that falls straight back under it is a false breakout.
The parts of a candlestickAn up candle and a down candle with the same high and low, labelled with open, high, low, close, the real body and the wicks.UP CANDLEclose above openHigh 41.00Close 40.30Open 38.20Low 37.40upper wickreal bodyopen to closelower wickDOWN CANDLEclose below openHigh 41.00Open 40.30Close 38.20Low 37.40Same high and low; only the open and close swap places.
The parts of a candlestick. One candle sums up a slice of time: the thick real body runs from the opening price to the closing price, and the thin wicks reach out to the highest and lowest prices traded. Colour tells you which way the body ran.

Educational only, not advice. Spotted an error? Post in Site Feedback.