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Market Intelligence › Basic Terminologies
Difference between intraday spike and close, and the relationship of settlement
Published by The Retail Trader · AUG 06, 2026 · Price Action
It is interesting where the sentiments of the day went. Where the day ended is important. Most systems and most settlements are written on this number.
Close is the price in which the position is ready to be held at any time. Intraday spike may be the result of a single order; Close is a collective decision.
Therefore circuit limits, margin, index values and most indicators — all are calculated at close par.
These things are true because:
• Deciding whether the level is broken or not by close is more reliable than intraday touch.
• Many exchanges take the average of last few minutes for close, not just the last trade.
• Every indicator of the daily chart is made at the close.
• Creating a system by leveling intraday high lows often leads to overfitting.
If your system is built on daily close then its decisions should also be passed at close, not in the middle of the day. The most common hidden mistake is the time frame of signal and execution time frame being different.
This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.