Glossary
52-week high and low
The highest and lowest prices a security has traded at over the past year, a common reference for range and momentum.
The 52-week high is the highest price a stock, fund or index has traded at during the past 52 weeks; the 52-week low is the lowest. Together they form the 52-week range, which appears on nearly every stock quote because it tells you at a glance where today's price sits within a full year of trading.
How it is calculated
The window rolls forward every day: each session the oldest day drops out and the newest is added. Most data providers use intraday highs and lows, not closing prices, so a brief spike during one session can set the high even if the stock closed well below it. Some sites use closes instead, which is why two quote pages can disagree by a few cents or more.
A simple way to place the current price in the range:
How traders and investors use it
- Momentum screens. Stocks making new 52-week highs are often already in strong uptrends; studies of momentum have found that such stocks have tended to keep outperforming for a while, though not reliably.
- Psychological levels. Many holders anchor on the old high, so it can act as resistance until it is cleared.
- Value hunting. Names near the 52-week low attract bargain hunters, but a low can keep getting lower; a cheap price alone is not a signal.
Remember that the figure is not adjusted for context: a stock that doubled and then fell 30% can still show a high that was set just weeks ago.