Understanding the Close Price
The close price is important in day trading across various markets, including stocks, cryptocurrencies, etc.
Along with the opening, high, and low prices, it forms the set of data points called “OHLC.”
Pre-Electronic Stock Trading Hours and Price Pattern
Historically, before the advent of electronic communication networks in 1969, stock exchange trading occurred exclusively during regular market hours, such as from 9:30 am to 4:00 pm for the New York Stock Exchange.
During this time, asset performance was clearly defined between days: trading would commence and conclude at specific price levels, and within each day, the highest and lowest prices were easily identifiable.
OHLC Metrics and Their Persistence in Modern Markets
Despite the availability of after-hours trading with the advancement of electronic trading, the OHLC metrics have not become obsolete.
They continue to hold value for market analysis and are primarily tracked within the timeframe of regular market hours.
Cryptocurrency exchanges, which emerged in the early 2010s following the creation of cryptocurrencies, introduced 24/7 trading from the outset due to their online nature and the uninterrupted operation of listed assets.
However, these exchanges still provide OHLC data to users, typically presented in candlestick charts.