Is "Yesterday close" an important indicator?

Quote from NihabaAshi:

It's always discussed along with the highs and lows. Therefore, it must be important to traders especially if your into pivot points, s/r levels, s/r zones, volatility analysis, supply/demand, intermarket analysis et cetera.

However, I wouldn't call "yesterday's close" an indicator. It's more like a "key price area" that a lot of traders watch for different reasons. I watch it.

Mark
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Yep, it is not an indicator, better call it a variable. Yesterdays's close is C[1], today's close is C[0].

C[1]/C[0] can be called an indicator. Usually, indicators have no units. However, C[1] - C[0] can be used as an indicator although it has units. It is all a matter of definition.
 
Quote from NihabaAshi:

It's always discussed along with the highs and lows. Therefore, it must be important to traders especially if your into pivot points, s/r levels, s/r zones, volatility analysis, supply/demand, intermarket analysis et cetera.

However, I wouldn't call "yesterday's close" an indicator. It's more like a "key price area" that a lot of traders watch for different reasons. I watch it.

Mark
More...


What this gentleman has stated


I would add there is also a thing called the opening range…. I find it beneficial as well



Regards

RN
 
I use Yesterday's close (YC) in ES in a few different ways. If my target exit price is just short of YC, I can extend my target to YC and get a little more profit. IF my entry is short of YC, I can wait for my entry to be this price area.

The more times todays price hits YC, tells me price is in chop instead of trending.

Just like Yesterday's high/low, weekly high/low, monthly high/low,
YC is just another price area to keep handy for Support/Resistance areas.
 
Obviously it's also important for the gap fill, since most gaps fill. I think it's very important for futures as well, because 82% of all gaps fill atleast half way. Most futures traders pay attention to the 4:15 pm close. Even if a gap doesn't fill, then it will usually fill within 5 days.
 
Quote from 0008:

few books or "gurus" mentioned it

but I get a feeling it is one of the most itechnical mportant indicator

any suggestion?
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It looks like other good traders/analysts have already chimed in, so as someone who does not believe risk can be managed effectively without volatility analysis, I would have also say, yes, the close is the most important price point on the bar.
 
chart it and watch it on variety of stocks or indexes. some stocks will play it, some will blow right past. if you like horizontal pivots also look into camarilla, woodie floor pivots - again, not all stocks play those lines and the ones that do, do not always. Might be good to have them charted as an extra tool.
 
It's incredibly important. How else would we know how much the market is up or down today if we didn't know where the market closed yesterday? :D
 
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