52-Week Range
What it is
The 52-week range is the lowest and highest price at which a security has traded during the prior 52 weeks. It’s commonly shown on stock quote pages and summarized on one line (low — high), but understanding the surrounding price action and trend gives much more context than the two numbers alone.
Why it matters
- Provides a quick measure of a stock’s annual volatility and trading extremes.
- Helps investors gauge where the current price sits relative to the prior year’s lows and highs.
- Used by technical analysts to identify breakouts, support/resistance zones, and potential trading opportunities.
How to interpret the range
- Two numbers alone are limited. Plotting a year-long price chart shows how and when the high/low occurred, and whether price is trending toward or away from those levels.
- It matters which extreme (high or low) is more recent; recent highs or lows carry different implications for momentum and risk.
Where the current price sits
Useful calculations:
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- Percent below the 52-week high:
- = (High − Current) / High
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Example: High = $100, Current = $70 → (100 − 70) / 100 = 30% below the high.
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Percent above the 52-week low:
- = (Current − Low) / Low
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Example: Low = $50, Current = $70 → (70 − 50) / 50 = 40% above the low.
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Position within the range (normalized):
- = (Current − Low) / (High − Low)
- Example: (70 − 50) / (100 − 50) = 0.4 → current price is 40% of the way from the low toward the high.
Trading strategies using the 52-week range
- Breakout strategy:
- Buy when price moves decisively above the 52-week high; short (or avoid) when it breaks below the 52-week low.
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Look for rising volume to confirm participation—breakouts with weak volume are more likely to fail.
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Entry timing and risk management:
- Aggressive traders may place stop-limit orders slightly beyond the high/low to catch an initial breakout.
- Conservative traders wait for a retracement to the breakout level (pullback) before entering to avoid “chasing” the move.
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Use stop-loss orders to limit downside if a breakout reverses (false breakout).
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Volume and indicators:
- Monitor volume-based indicators (e.g., on-balance volume) to confirm that a breakout has institutional support.
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Combine the 52-week range with trend and momentum indicators to assess strength and sustainability.
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Psychological levels:
- Breaks of round-number price levels (e.g., $50, $100) that coincide with 52-week breakouts can attract more attention and liquidity.
Limitations and cautions
- The 52-week range is descriptive, not predictive. It doesn’t indicate the reason for the high or low.
- False breakouts are common—confirmation and volume are essential.
- Use the 52-week range as one tool among others (trend analysis, fundamentals, risk management) rather than as a sole decision factor.
Key takeaways
- The 52-week range shows a stock’s annual low and high and helps assess volatility and relative price position.
- Calculate percent distances from the high or low and the normalized position within the range to quantify where price stands.
- Effective use requires confirmation from volume, trend indicators, and proper risk controls to avoid false signals.