Distance From Highs
Last updated
Last updated
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During an uptrend, it can be helpful to know how far a security's price is relative to a previous high. It can give you some idea of how much higher a security’s price will move. And if you're a trader who likes to open a long position when price has broken above a significant high, then knowing how far price is from that high can be useful for timing your trade entries. The Distance From Highs indicator in StockChartsACP indicates how far a security's price is from its 52-week, 9-month, 6-month, or 3-month high.
The Distance From Highs indicator can be charted on StockChartsACP. Here's how you add the indicator to your chart.
From Chart Settings in the left menu bar, under Add Indicator, scroll down and click Distance From Highs.
Select either the 52-week high, 9-month high, 6-month high, or 3-month high from the Distance From dropdown menu.
From the High Definition dropdown menu, you can choose whether to use the closing high or intraday high.
Select Line Style (auto, solid, dashed, histogram, area, dots, etc.).
Select Color of your choice for the indicator display.
The indicator will be displayed in a separate panel that can be placed above the price, below the price, or overlaid on the price chart. If displayed in a separate panel you can see the distance from a high is expressed as a percentage. This is because using percentages makes it easier to compare different securities across different timeframes. For example, in the chart below, price recently hit a 52-week high and is now pulling back. The Distance From 52-Week High indicator shows that price is 1.91% below its 52-week high.
You could scroll through your ChartLists and identify securities close to their 52-week, 9-month, 6-month, or 3-month highs. That will give you an idea of how far price is from a specific high and how much price could move.
