Analyzing the 52-Week High/Low

The 52-week high/low is a commonly used indicator in stock trading. Here are the basics of the 52-week high/low and why some investors utilize it when analyzing stocks.

The 52-Week High/Low

The 52-week high/low is a figure that represents the highest and lowest prices that a stock has traded at over the past year. This gives you an indication of exactly where the price of the stock has gone over the course of the last 52 weeks.

How It Is Used

Investors will use the 52-week high/low in a number of different ways when analyzing certain stocks. This indicator can tell you exactly how volatile a particular stock is. If the difference between the high and low for the year is substantial, you will know that the price of the stock can change rapidly. However, if the price has remained relatively consistent over the course of a year, it will typically be a steadier stock.

Many investors will also use this indicator as a way to determine when to buy or sell. If a stock is trading near its 52-week low, this could indicate that it is due for an upward price movement. While this should not be the only thing that is considered, it can be helpful when taken in context.

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