Candlesticks
Close
The last traded price of the period. The close is the most important price on a candle because it shows who finished the period in control.
Also called: closing price
In practice
A daily candle spends the session mostly green but then sells off to close red near its lows. That weak close tells traders buyers failed to hold the gains by the period's end — a far more bearish signal than the green body that dominated mid-session.
Why it matters for traders
The close is the single price the market 'agreed' on at the end of the period, and most strategies trigger off it rather than off intraday extremes. Waiting for a candle to close before acting on a signal is how traders avoid being faked out by moves that evaporate before the bell.
Common pitfall
The mistake is acting on an intrabar move before the candle closes, then watching it reverse before the period ends. Many 'signals' evaporate by the close. The discipline is to wait for the candle to close before treating a shape as a pattern. This small patience filters out the majority of fakeouts and aligns your entries with the price the market actually agreed on, rather than a momentary extreme that meant nothing.
Putting it in context
Like all candlestick concepts, this pattern is a clue about order flow, not a guarantee about what happens next. Its reliability depends heavily on context: the same shape means little in the middle of a range but can be significant at a well-tested support level, a prior swing high, or a round psychological number. Professional traders also weigh the timeframe — a signal on the daily chart carries far more weight than one on the five-minute chart, where noise dominates. Before trading any candlestick pattern with real money, scroll back through at least a hundred historical examples on the pairs you trade and note how often the expected follow-through actually occurred, and what the best confirmation and stop placement would have been.
Lessons that use this term
- Weekend gap risk
Why a stop loss does not protect you between Friday's close and Sunday's open.
- What a single candle shows
Open, high, low, close, body and wick — the four prices packed into one shape.
- Rejection vs confirmation
Why a pattern is never a trade until the next candle closes.
Related terms
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