For Business

Trading Strategies

What Is the Daily Candle Close Strategy

The daily candle close strategy reads one number a day — the close of the daily bar — against the day before, and ignores everything the price did in between. This paper shows you the euro's 9 April 2025, which went 103 pips above yesterday's high and closed 46 pips under it, and 10 April, which closed above, from real bars; the idea as a gavel that falls once a day; the two days on the daily chart; 9 April hour by hour, with eighteen hours above the line the close did not keep; and the period separators that mark the day's boundary on your platform.

Difficulty
Intermediate
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

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One number a day

The daily candle close strategy is built on one number a day: the close of the daily bar, read against the day before. Take the euro against the dollar in April 2025. On 8 April the high was 1.09916. On 9 April the price went 103 pips above that high during the day, to 1.10948, and closed at 1.09458 — 46 pips under it. On 10 April the close was 1.11965, 102 pips above 9 April's high. On 9 April the strategy's reading gave it nothing, because the close was under the line; on 10 April it gave it a cue. The wick is not the close, and the strategy only reads the close.

A gavel

Picture a gavel. The day argues for twenty-four hours — every tick from midnight to midnight is the price making a case, up 103 pips at one point on 9 April — and the close is the verdict, the one number written down when the gavel falls. The strategy does not listen to the argument. It waits for the gavel and reads one number against yesterday's, which is why it has one moment a day and no others. On this feed's clock the daily bar closes at 00:00, which is five in the afternoon in New York; on another broker's clock the gavel may fall at a different hour, and the closes differ.

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