CLOSE HIAccumulation trait

Close near the high of the day

Why the spot where a stock closes inside its daily range tells you who won the day, and how Breakaway scores it.

What it is

The close is the price the market settled on after a full day of trading. A close near the high means buyers were still in control at the bell and nobody sold into the strength. A close near the low, on a day that was up at one point, means the rally got sold. Where the close lands inside the range is one of the oldest signals traders use.

How Breakaway uses it

CLOSE HI fires when the close is in the top 30 percent of the day's range. It is an accumulation trait, which means it tracks steady buying. On the chart, a run of closes near the high inside a tight range is what steady buying looks like.

How to read it

The trait is most useful on the breakout day itself. A break above resistance that closes near its high on heavy volume is the strong version. One that closes in the middle of the range after touching a new high has been sold, and it often needs another attempt. On a down day, a close near the high means buyers stepped in late. Inside an uptrend, those days often get bought.

Related

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