Confusion about 52 week high/lows

Hi all

I have a question about 52 week high and lows. Up until this point, I was under the impression that a 52 week high (same thought-process for 52 week lows) was formed if a stock or any other instrument had traded (at any point throughout the day) at it's highest price of the last year, regardless of what the price closed at. However, after looking into this I saw the following definition on Investopedia...

The 52-week high/low is based on the daily closing price for stocks and indexes. Often times, a stock may actually breach a 52-week high intra-day but end up closing below the previous 52-week high, thereby going unrecognized. The same applies when a stock makes a new 52-week low during a trading session but fails to close at a new 52-week low, going unrecognized. The cliché "If a tree falls in the woods and no one hears it, did it really fall?" applies. However, in these cases, the failure to make a new closing 52-week high/low can be very significant.

This would mean my previous explanation would be wrong, as prices can only form 52 week highs if they actually close at the highest prices they have for the last 52 weeks?

Is this correct? Or can you interpret 52 week highs/lows in 2 different ways: (1.) the higest/lowest price traded at for the last 52 weeks, and (2.) the highest/lowest price closed at for the last 52 weeks?

Any help would massively appreciated. Thanks

Confusion about 52 week high/lows