Yearly High

Understanding Yearly High in Trading

The term Yearly High is a key concept that every trader should know. But don't panic if you're new to trading. We'll break down what 'Yearly High' is, and why it matters in trading.

What is a Yearly High?

In trading, Yearly High refers to the highest price that a particular stock, bond, commodity, or any other security has reached during the course of a single year. It symbolizes the peak value that a security has achieved in the past 12 months.

Why is the Yearly High Significant?

Now, you might be wondering, why does the Yearly High matter? The answer lies in its usage. For traders, keeping track of a security's Yearly High can offer key insight into its performance, trends, and potential future movements. It represents a resistance level which, if broken, can often indicate upward momentum.

An Example of a Yearly High

For instance, let's say a stock reached its Yearly High at $100 in July, but currently trades at $90. If that stock begins to climb and surpasses $100, it could suggest the stock has significant upward momentum, and might continue to rise. This is why Yearly Highs are closely watched by traders and investors alike.

Conclusion

In summary, a Yearly High is a crucial metric in trading that indicates the highest level a security has reached in the past year. It serves as an indicator of performance and potential resistance levels, making it a valuable tool for predicting future market moves.