Elearnmarkets - Financial Market Learning
  • Courses
  • Webinars
  • Stories
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
Get Free Course
  • Basic Finance
  • Derivatives
    • Futures
    • Options
  • Financial Planning
  • Fundamental Analysis
  • Technical Analysis
  • Mutual Funds
  • Marketshala
  • Miscellaneous
Elearnmarkets - Learn Stock Market, trading, investing for Free
  • Courses
  • Webinars
  • Stories
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
Get Free Course
Elearnmarkets - Learn Stock Market, trading, investing for Free
No Result
View All Result
Home Technical Analysis
52 week high

How to use 52 Week High/Low Levels in Trading?

Elearnmarkets by Elearnmarkets
March 5, 2025
in Technical Analysis
Reading Time: 6 mins read
3
18.2k
VIEWS
Share on FacebookShare on XShare on WhatsApp

52 Week High/Low Levels? Why are these levels so important to the trader who trade by analyzing technical charts?

The 52-week high/low levels are considered to be significant resistance/ support levels when we look at the technical charts for trading stocks in the stock market.

The 52-week high/low is the highest and lowest price of the stock within the past 52 weeks. These numbers are calculated on the daily closing share price. But remember, they do not show intraday highs or lows, which may be reached during a trading session.

Traders use 52-week high/low levels for many reasons, including as an indicator to determine how volatile the stock has been over the past year or if the stock is trending in one direction or the other.

So, in today’s blog, we will discuss the importance of 52 week high/low levels is and how to trade with the same:

Table Of Contents
  1. What 52 week high/low levels mean?
  2. How does this work?
    • 1. Reversal
    • 2. Trend Continuation
  3. Identifying these levels with the help of StockEdge
  4. Bottomline 

What 52 week high/low levels mean?

Traders use these levels as a technical indicator for analyzing the current value of a stock and its future price movement. 

Traders usually show an increased interest in a particular stock when its price is near the high or the low end of its 52-week price range. The range generally exists between the 52-week low and the 52-week high). These levels are based on the daily closing price of the stock. 

One should not that often, a stock may break a 52-week high intraday, but it may end up closing below the previous 52-week high, thus going unrecognized. 

This also applies when a stock makes a new 52-week low intraday but fails to close below the new 52-week low.

Many websites provide stock quotes with additional information, including the company’s market capitalization, the bid and ask prices, price-to-earnings ratio, the volume of shares traded and also the 52 week high/lows as shown below:

52 Week HighLow Levels in Trading

Now let us discuss how can we trade with this technical indicator:

How does this work?

The 52-week high/low helps us in predicting whether the ongoing trend will continue or reverse as explained below:

1. Reversal

When the stock price trades reach and close near its 52-week high, the traders expect that the price will trade lower in the future as the 52-week high is considered the resistance level.

As a result, many traders book their profits because they believe that the prices may reverse from the resistance level.

This applies to a 52-week low as well, where traders expect this to be a support level and expect it to rise. 

Reversals can be an effective trading strategy. For example, if the price fails to break the 52 week high/low levels, then the traders can expect the prices to reverse from those levels as shown below:

How to use 52 Week High/Low Levels in Trading? 1

From the weekly chart of the State Bank of India, we can see how prices reverse back from their 52-week high level. In addition, we can also see the formation of Doji candlesticks at this level that shows uncertainty in the market, and the trend may reverse to the downtrend. 

Traders should use this information and other technical indicators and volume data. We can use additional technical indicators for predicting reversal patterns, including the descending wedge or the rounding bottom.

If the reversal does not occur, one should put a stop-loss order to minimize the loss. However, many traders prefer to wait and watch and only enter once the reversal in trend becomes apparent.

You can also take our course on CERTIFICATION IN ONLINE TECHNICAL ANALYSIS to learn more about Technical Analysis

2. Trend Continuation

Other traders choose to buy or sell when a new 52-week high or low is reached or the stock breaks out from these levels.

One should also look at the volume of shares when a stock price crosses either the 52-week high or low mark. Usually, trading volume rises when the stock moves past the high or low mark, then falls.

How to use 52 Week High/Low Levels in Trading? 2

From the weekly chart of Blue Star Ltd., we can how the prices broke out from the previous 52 week high with an increase in volume, forming a new 52 week high and indicating trend continuation.

Particularly momentum investors pay attention to 52-week high/low marks. They believe that a stock market’s recent winners and losers will remain winners and losers in the near term. This strategy is known as “relative strength investing.”

Identifying these levels with the help of StockEdge

There are many 52 week breakout scans in StockEdge that helps us in filtering stocks for our trading, as shown below:

How to use 52 Week High/Low Levels in Trading? 3

After clicking on any of the above stocks, we can get a list of stocks satisfying that criteria as shown below:

How to use 52 Week High/Low Levels in Trading? 4

Bottomline 

Whether you are a momentum investor or not, reviewing a stock’s 52-week high and low prices can give you useful information. We hope you found this blog informative and use it to its maximum potential in the practical world. Also, show some love by sharing this blog with your family and friends and helping us in our mission of spreading financial literacy!

Happy Investing!

Tags: basicenglishstock markettechnical analysis
ShareTweetSend
Get Kotak Offer Get Kotak Offer Get Kotak Offer
Previous Post

How RBI Monetary Policy affects the Indian Stock Market?

Next Post

Women’s Day!! Five Golden Rules for Women who Invest in the Stock Market

Elearnmarkets

Elearnmarkets

Elearnmarkets (ELM) is a complete financial market portal where the market experts have taken the onus to spread financial education. ELM constantly experiments with new education methodologies and technologies to make financial education effective, affordable and accessible to all. You can connect with us on Twitter @elearnmarkets.

Related Posts

Understand Slippage in Trading
Technical Analysis

What is Slippage in Trading? Meaning & Examples

March 28, 2025
278
Breakout trading strategies
Technical Analysis

Top 5 Breakout Trading Strategies

March 12, 2025
1k
5 stocks for today
Technical Analysis

5 Stocks to Buy Today That Could Beat the NIFTY in 2025!

May 5, 2025
388
Image describing What is marginal trading facility
Technical Analysis

 What is a Margin Trading Facility? Advantages & Risks

April 4, 2025
656

Comments 3

  1. Prosenjit Halder says:
    3 years ago

    Very crucial and helpful content. Thanks Sir.

    Reply
    • Sakshi Agarwal says:
      3 years ago

      Hi,

      We really appreciated that you liked our blog! Thank you for your feedback!

      Keep Reading!

      Reply
  2. Jagmohan Singh says:
    3 years ago

    Keep sharing these type of informative articles. Thank you!!!

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer

Elearnmarkets (Kredent InfoEdge Pvt. Ltd.) is a SEBI-registered Research Analyst (RA) entity (SEBI Registration No.: INH300007493). The information provided in this article is for educational and informational purposes only and should not be considered as an offer to buy or sell any securities or investment products.

The stocks, securities, and investment instruments mentioned herein are not recommendations under SEBI (Research Analysts) Regulations, 2014. Readers are advised to conduct their own due diligence and seek independent financial advice before making any investment decisions.

Investments in securities markets are subject to market risks. Please read all related documents carefully before investing. Investing in Equity Shares,
Derivatives, Mutual Funds, or other instruments carry inherent risks, including potential loss of capital. Elearnmarkets (Kredent InfoEdge Pvt. Ltd.) does not provide any guarantee or assurance of returns on any investments. Past performance is not indicative of future performance.

Elearnmarkets Logo

Follow Us

Facebook-f X-twitter Instagram Linkedin-in Youtube Telegram

Register on Elearnmarkets

Continue your financial learning by creating your own account on Elearnmarkets.com

Register Free Account

Download App

Playstore logo
Download on app store

Categories

  • Basic Finance
  • Derivatives
  • Financial Planning
  • Fundamental Analysis
  • Technical Analysis
  • Mutual Funds
  • Miscellaneous

Popular On Elearnmarkets

  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati

© 2025 Elearnmarkets. All Rights Reserved

  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling
  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling

Download Our App

No Result
View All Result
  • Article Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • ETFs & Mutual Funds
    • Marketshala
    • Miscellaneous
  • Language
    • Hindi
    • Bengali
    • English
  • Courses
  • Webinars
  • Stories
Get Free Course

© 2024 Elearnmarkets All Rights Reserved

A Handbook of Technical Analysis
To start your trading journey as a seasoned technical analyst
Download Guide For FREE
Infinity Plan
Trading Day 2025