Closing Range: Reading the Day's True Conviction
Published on September 14, 2025 by Rajan Kumar
In the daily battle of market analysis, traders seek an edge. While price change and volume are vital, a subtle yet powerful indicator reveals the real story behind a stock's move: the Closing Range.
Understanding this concept elevates your analysis, letting you see past the simple green or red percentage to the underlying conviction of the trading day.
What is the Closing Range?
The Closing Range pinpoints where a stock's price closed relative to its high and low for the day. It's a simple value between 0 and 1 that packs a lot of information.
Strong Close
Indecisive Close
Weak Close
The Formula
(Close - Low) / (High - Low)
Interpreting the Story: Buyers vs. Sellers
The real power of the Closing Range is what it tells you about the battle between buyers and sellers. Who won the day?
High Closing Range (> 0.75)
This is a sign of strong buyer conviction. Buyers were in control until the end, absorbing selling pressure and pushing the price to its peak. A bullish sign that momentum may continue.
Low Closing Range (< 0.25)
This shows strong seller pressure. Even if a stock was up, a weak close suggests exhaustion. Sellers dominated the end of the session, a bearish sign for the next day.
Putting It All Together
The Closing Range is most powerful when combined with other data. A stock up 5% with a high Closing Range and strong volume is a far more convincing signal than one with a weak close.
Manually calculating this for every stock is tedious. That’s why it's a core, visual feature in the Daily Market Scan tool. You can spot conviction or weakness across the entire Nifty 50 in seconds.