Amateurs open the market, professionals close it

Let’s start with the obvious: what is “the open”?

We know it’s often wider spreads on stocks, lower liquidity, the market whips around and takes some time to settle down.

Data even shows that a big percentage of intraday highs and lows happen in the first 30 minutes. Great for scalpers of course, potentially dangerous for everyone else.

And just think, if you’re an institution trying to build a position, you’re not diving into that chaos.

You’re waiting. Letting the order book fill. Letting price settle down.

Compare that to the close…

After a full day of price discovery, emotion, and execution, the closing print is the final “vote” if you like.

It’s the price both sides agreed on after everything played out.

And for a lot of big boys, rebalancing, hedging, managing client flow, the only thing they really care about is the close. (and maybe the VWAP…)

Even when we look at a daily chart, it’s the C in OHLC that carries the most weight.

And think about intraday sentiment shifts:

• A weak open that rallies and closes strong? That tells a story.
• A gap up that fades and closes red? That’s another.

Think of it as: The open is noise. The close is signal.

So next time you’re framing a trade or reviewing your charts…
Ask yourself: “What did the close say?”

Because as the traders from decades ago used to say…
“Amateurs open the market, professionals close it?”