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52-Week Range
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A 52-week range is a difference between an asset’s highest and lowest prices over
the past 52 weeks.

What Is a 52-Week Range?

A 52-week range is the data point that includes the highest and lowest price at which an
asset has traded in the past 52 weeks ( which is around one year). As a result, it is often also
called the yearly range.
The 52-week range offers information on an asset's volatility and where its current price is
relative to the highest and lows in the past year. If the difference is more significant, it
indicates an asset has great volatility. However, this must be considered relatively. For
instance, a $5 difference between the highs and lows for a $10 stock is not the same as that
of a $100 stock. The former has price swings of around 50%, while the latter saw price
swings of just 5%.
Checking the current price of an asset lets traders know whether an asset is vital (trading
near its high) or weak (trading near its low).
The one-year period is arbitrary, and it may or may not hold importance to all traders. For day
traders, the daily range is more important. For a long-term holder, the highs and lows over
several years mean more than a single 52-week range.
Strategies Used for the 52-Week Range
The most straightforward trading strategy for the 52-week range is to focus on price relative
to the highs and lows. Traders will be more likely to trade asset prices near the low end since
the low often indicates a support level. Additionally, assets at the high end of the range may
see more actions as they test resistance levels numerous times.
Most 52-week strategies require some technical analysis. Traders look for simple and
complex patterns, open positions with stop losses, and target prices based on historical
figures.
Limitations of the 52-Week Range Strategy
The 52-week range only tells you the past performance of an asset. It does not tell you about
the factors driving such performance. For instance, if an asset loses 20% from its 52-week
high and continues to drop, it is important to look at the news driving this trend. This
information is not immediately apparent when looking at the 52-week highs/lows.
It is important to realize that the 52-week data cannot tell you anything about price relative to
movement. You will need to investigate other metrics to get a clear picture. For instance, an
asset that is trading way above its 52-week high cannot tell investors whether it is
overvalued, undervalued or valued the right way. Just because it is above its 52-week high, it
isn’t necessary that it is a good investment.

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