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52-Week Range or Yearly Range Definition

The 52-week range is the difference between the highest price and the lowest price an asset has traded at over the last 52-weeks (approximately one year, so it is also called the yearly range).

52-week range chart
52-week Range on T Daily Chart

What is a 52-Week range?

The 52-week range provides information on how volatile an asset is, as well as where an asset’s current price is relative to the highest and lowest price over the last year.

The wider the 52-week range the greater the volatility, although this must be considered in relative terms. For example, a $5 difference between the yearly high and yearly low doesn’t mean the same for a $10 stock as it does for a $100 stock. The former had price swings of about 50%, while the latter had price moves of about 5%.

An asset’s current price lets traders know whether the asset is strong (trading near its 52-week high) or weak (trading near its 52-week low) relative to yearly range.

One year is arbitrary and may or may not have significance to all traders. To a day trader the daily range (average movement each day) is more important. To longer-term traders/investors the high and low price over several years may be more significant for making trading decisions.

Further Reading On This Topic

Basic Day Trading Terms Every Day Trader Should Know

Basic Day Trading Terms: What Long and Short Mean

Bid, Ask and Last Price – Understanding Stock Quotes

 

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