Distance To Highs
Last updated
Last updated
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When a security is trending higher, and you’re considering buying it, you may want to know how much further price will have to move to reach its 52-week, 9-month, 6-month, or 3-month high. That’s what the Distance To Highs tells you.
Plotting the Distance To Highs in a subchart helps to quickly determine how much further price has to go to reach a specific past high. This can be especially helpful if a stock is trending higher. Some traders prefer to buy a stock after it has crossed above its 52-week high as long as there’s follow through to the upside. Others may prefer to use a shorter time frame.
The Distance To Highs indicator can be added to a chart in StockChartsACP. Here's how to add the indicator to a chart.
From Chart Settings found in the left menu bar, under Add Indicator, scroll down and select Distance To Highs.
Then select either 52-week high, 9-month high, 6-month high, or 3-month high from the Distance To dropdown menu.
Choose from closing high or intraday high from the High Definition dropdown menu.
Select Line Style.
Select Color for the indicator.
The Distance To Highs indicator will be displayed in a separate panel that can be placed above or below the price. You could also overlay the indicator on the price chart. When displayed in a separate panel, the Distance To Highs is expressed as a percentage.
In the chart below, the Distance To 52-Week High indicator is at 16.2%, which is pretty close to its one-year high.
The Distance To High Indicator can be helpful in identifying stocks that are trending higher and may be close to a specific high. If you like to trade stocks that break out from a significant high, you could use the Distance To Highs indicator to identify stocks to trade.
