Today's High: Everything You Need to Know About

From the economy to a business, most things are cyclical. A high today doesn’t guarantee a high tomorrow. However, these may or may not be in regular intervals. Exchange-traded securities fluctuate in price almost every single day. It’s unlikely to have a day without any movement. Change however small creates a new price level for analysts to monitor regularly.

Investments, too, have these high and low price fluctuations. Ideally, everyone wants to buy at the bottom and sell at the security’s highest possible point. In this article, you will learn the answer to “what is today’s high”.

Today’s High

Today’s high indicates the highest trading price of a security in one single day. It is often perceived as contrasting with today’s low and listed as a basic quote along with the current price.

Predominantly, intraday traders use today’s high and today’s low points as a technical signal for price movements. Long-term investors are not concerned about this metric as much as the day traders.

Today’s high provides information like:

• News affecting the price movements
• Price of the security
• Factors and news affecting the security
• Calculating moving averages

Today’s high combined with today’s low can provide information on price gaps and jumps in a security’s price to intraday traders. Day traders essentially use today’s high and low prices to time the market for entry or exit a position. Day traders execute this strategy to capitalize on short-term gains.

Today’s high creates a very short-term resistance level that can help in buy and sell decision-making. It can be located on a security’s chart that provides information about its pricing. It can also be represented as a line graph, the top-most point of which is known as today’s high for the day.

It is crucial to note that today’s high might not necessarily form the 52-week high despite being higher than the 52-week high. This is because the closing price is considered a 52-week high while today’s high is the highest trading price of the day irrespective of the (lower) closing price.

Importance of Today’s High

Today’s high acts as an indicator of the security’s price range it has been trading, which provides an understanding of the stock, such as news impacts, entry and exit levels, and the prospective trading range of the security.

Today’s high shows the highest value that stock reaches during a day’s trading window. It is a piece of valuable information for technical analysts and the day-traders when combined with today’s low. The price information should be seen in its entirety to make sense of the data points.

Today’s high is a component majorly used by intraday traders. They use the intraday price fluctuations and charts to strategize their entry and exit levels in a trade setup.

One of the most important components of a candlestick chart is today’s high data point. The Candlestick chart is a widely used chart by technical analysts. They use today’s high in making trade decisions, majorly when evaluating any short-term direction of a share price.

Options trading can also be done on an intraday basis. Traders and analysts use intraday options prices to identify periods when the option is undervalued relative to the underlying security.

Example of Today’s High

Price movements of a security are presented throughout the trading period within the day and summed up after the trading hours.

For example, On June 3, 2022, shares of Adani Wilmar Ltd. (AWL) opened at INR 687 and closed at INR 678.10. During the trading hours, the share price dropped as low as INR 651 and hit the highest price of INR 668. This INR 668 price point is known as today’s high for the 3 rd of June 2022. The price range for the day was INR 651 to INR 668. The 52-week high and low of AWL are INR 878 and INR 227, respectively.

Suppose on June 7, 2022, the share price of AWL moves to INR 890 but closes at INR 850 then note while today’s high for that day is INR 890, the 52-week high remains at INR 878.

Technical analysts and intraday traders interested in this stock would study the shares’ fluctuations to decipher any pattern or unfold any significant gap in the prices with no trading in between.