A close price indicates the last traded value of a digital asset within a given time period, usually a day. It is used by traders to help determine long-term trends.
The close price provides traders with a broader view of an asset since it buffers random fluctuations to establish longer-term trends. For example, a weekly close price below the previous close for eight consecutive times typically means the market is not improving. A week is generally considered long enough for a close price to establish a trend.
