What it is
The 52-week range is the lowest and highest price a stock has traded at over the past year. It is shown on almost every quote page.
Range position
Range position = (price - 52-week low) / (52-week high - 52-week low)
A stock with a low of $40, a high of $100 and a price of $55 sits at (55 - 40) / 60 = 25% of its range.
Reading it
| Position | Often means |
|---|---|
| Near 0% | Out of favour; possible bargain or a broken business |
| Middle | No strong signal |
| Near 100% | Strong momentum, or getting expensive |
Stocks making new 52-week highs have tended to keep outperforming for a while (Momentum investing). Stocks near their lows are cheap only if the business is still sound (Mean reversion).
Using it with fundamentals
A strong company near the bottom of its range, with growth and valuation intact, is where many long-term investors look for entries. Check first that nothing in the business has changed.
See also
- Momentum investing What price momentum is, the evidence that recent winners tend to keep winning for a while, how momentum is measured, and its crash risk.
- Mean reversion What mean reversion is, how prices and valuations tend to return toward an average, how traders use it, and why it fails when fundamentals change.
- Relative Strength Index (RSI) What the RSI indicator measures, how the 14-day RSI is calculated, what overbought and oversold readings mean, and the limits of using it alone.
- Fundamentals vs technicals The difference between fundamental and technical analysis, what each is good for, and why this site uses fundamentals to choose and technicals only as context.
Pages that link here: Building a research watchlist, Market breadth
Last updated September 30, 2026. Education only, not investment advice.