Educational 21: Importance of Closing Price

In the above chart, I have a drawn a closing price resistance line in blue indicating a highest candle close on the chart, now the price action needs to close above that previous resistance to indicate further upside movement in the stock therefore we need to wait for the daily price closing in order to determine and confirm the further movement.

In this chart, the price action did go above the marked resistance level (in blue horizontal line) but failed to close above it which indicated selling pressure at higher levels and eventually if it failed to close above the resistance zone then it came down sharply.

Therefore, a trader must wait for the closing of a candlestick in order to determine and confirm the big players further movement in the market.

Lesson: Trade with the confirmation of closing price or candlesticks .

Aug 21
Comment: Reliance Capital is still facing selling pressure and dipping down.


Possibly bullish flag & pole is under progress..!
+4 Reply

vortex indicator is very good indicator which shows trend, so if you master this indicator to read, it helps to identify trend beforehand. please try it. rel capicat jwill correct , correction has set in
+2 Reply
NeeteshJain nalinakshi
@nalinakshi, That looks good and convincing, thanks for sharing. Regards
on key resistance/support breach not one close even a couple of closes is must to confirm expected movement....
+2 Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Refer a friend My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out