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Learn What are Highs and Lows in Stocks(52 Weeks)


What are Highs & Lows in Stocks?

When a stock price hits a period high like One Year or 52 week High they are called as High and similarly when they hit a period low like one year or 52 week low they are called as lows.

About 52 week Highs and 52 week Lows.
Traders uses these high/lows to trade differently. There are various theories about these psychological numbers and there impact about future market trend when stock nears to these points. Some people treat these values as very important numbers and probably for them, most of the websites and research reports mention these values. While some consider them as any other number without any special meaning.

Lots of research has been done on these levels but it is not possible for us to provide data on those reports because for various reasons.

Some Uses of Highs/Lows

Some traders considers as 52 week or any other period low as good buying opportunity as they perceive it as price below fair value.
Some considers 52 week High as a good exit point as the price may have gone way beyond its fair value.
Many consider these levels as good support and resistance points.
Some investor do not wait for it to touch lows but wait for it to come to x % above low to invest.
Some investor do not wait till price hits their highs. They keep a x% below high to exit.
Some buy when Stocks is farthest from their highs to invest.
Some use stock farthest from lows to exit.

Our advise

We consider these high lows of great significance. However, we do not advice to take a buy/sell call solely based on these numbers. We would advice to add more indicators along with them. When stock is above past 52 week high with good volume then it may create newer highs.

Similarly when stock is below 52 week Lows with high volume and high momentum then its better to avoid these stocks till a trend reversal signal is generated.

A 52 week high stock means there is no visible resistance, so play with them more cautiously.

Similarly a 52 week low stock has no near term support. So it may continue to fall more.

If broad economy is doing good then playing above 52 week high can be an option.
Similarly in deep recession it is better to avoid 52 week low.
For patient investor who do not have much time for analysis may consider investing at lows.
Similarly for investor who do not have much time for analysis may consider exiting at highs when they have made good profit.
For investor who takes decision based on fundamental analysis and considers as stock price below fair value may want to buy stocks at their lows.
Similarly investor could consider stock price above fair value may want to sell stocks at their high.

Reports on Highs/Lows in TopStockResearch

We at TopStockResearch.com consider these highs and Lows of great importance, therefore, we not only provide stock screening based on 52 week and One Year High & Lows but also for period like One Week, Two Week, One Month, Three Months, Six Months Highs/Lows also.
Warning a. Highs/Lows work very well in side ways market.
b. In Strong trending market its best to avoid high lows.


Our website provides also provides free Stock screening on Technical Indicators. It can be found at below link:

Related Technical Stock Screener

Stock Near HighsStock Near LowsStock Farthest From HighsStock Farthest From Lows
Stock Near HighsStock Near LowsStock Farthest From HighsStock Farthest From Lows

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Total Comments 2

User Comments
Posted by Guest
Posted on: 16-Dec-2013
When calculating the price for farthest from high I request that splits bonus huge special dividend that happened between the periods may be considered or some asterisk may be placed to highlight the deviation. Ramabhadran. Chi8ram@yahoo.co.in

Posted by KULDEEPALWAR
Posted on: 10-Nov-2013
Good Thing to do action for more gain near 52 week High or low


(All analysis is based on End of Trade day's Value. Expected time of update is between 5 to 5.30 PM exchange time Zone)

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