Opening price and closing price are relatively critical technical indicators, and they play a vital role in the operation of the foreign exchange market. However, many novices do not know the meaning of these two terms.
Today, we will tell you some information about them.
The opening price
The opening price, also known as the opening price, refers to the first transaction price of a currency after the opening of each trading day. Most financial exchanges in the world use the principle of maximum turnover to determine the opening price. The closing price refers to the transaction price of the last currency transaction a day before the end of the trading activity. If there is no transaction on the day, the most recent transaction price is used as the closing price because the closing price is the market standard of the day and the basis for the opening price of the next trading day. It is used to predict future market conditions; therefore, when investors analyze market conditions, they usually use the closing price as the basis for calculation. What about the opening price?
On the monthly, weekly, and daily charts, the opening price continues the last unit market trend. The opening price opens high, opens low, and flat opens are combined with the market operation trend. In an upward trend, a high opening price is a prerequisite for forming an upward gap. The weekly line on the upward gap is the beginning of a bull market characteristic.
There are three gaps in the daily gap: breakthrough gap, relay gap, an exhaustion gap. These gaps provide a basis for judging the direction of future market operations. Similarly, the opening price is low in a downward trend, and the opening price is the prerequisite for forming a short downward gap. The temporary gap is usually the beginning of a bear market. When a crack occurs, you should be more vigilant about being in a high position.
What is the closing price?
The closing price results from the competition between the long and the short in the time unit. The combination of the closing price and operating trend will make the market clearer. In an uptrend, the closing price is an average system of 5 days, ten days, 20 days, and 30 days, indicating that the market is in an uptrend and a vital operation state. In the early stage of the formation of this operating trend, boldly intervene in the market and hold the hope that it will increase value-added. On the contrary, the closing price is below the average system of 5 days, ten days, 20 days, and 30 days, indicating that the market is in a downward trend and a weak state. This is the opening price and closing price. Do you understand?