Monday, March 3, 2014

Trading Scans-52 Week New High & 52 Week New Low

52 Week New High & 52 Week New Low

The stocks making new 52 Week Highs & new 52 Week Lows are very popular kind of scans
adopted by seasoned investors.

The idea behind New High parameter is that if the stock is making a new 52 New High , it is showing
tremendous strength on its part . This new high being created by the stock is showing new buying interest in the stock and more & more people are taking interest in owning this stock. Getting into such stock can be profitable. However this is not a writing in the stone that if a stock has made a new 52 week high it is surely going to go north forever.

52 Week new low on the other hand is a sure way of recognizing a stock which is getting weaker
in demand by the investors. People are getting rid of the stock because of some fundamental flaw
in the working of the company and thus declining stock price. This let people keep the stock at radar
to remain far from investing in such stock at such weaker times of that stock.

52 Week New Highs & 52 Week New Lows are a powerful indicator of the strength or weakness of
the stock and largely gives a good idea of when to go long in a stock or when to remain away from it.
These are longer term scans and meant for positional investors.

Also Read :

Trading Scan: Price Crossing Above or Below 200 Day Moving Average

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