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Captures the lower price extreme of the period, exposing the minimum valuation the market momentarily accepted.
Low is the lowest traded price during the period. It marks the lower boundary of the price range.
The low price is the minimum price at which a security traded during a specific period—whether a single day, week, month, or year. This represents the trough of selling pressure during that timeframe, the lowest price any seller was willing to accept and any buyer was willing to pay. The daily low is essential for understanding support levels and measuring volatility.
Why the low price matters:
- Support identification: Lows often mark price levels where buying emerged
- Volatility measurement: High-low range shows price movement extent
- Breakdown analysis: Breaking below previous lows signals potential weakness
- Risk assessment: Distance from low to close may indicate buying support
Technical analysis applications:
- 52-week low: Trading near lows may indicate distress or value opportunity
- Support levels: Previous lows become future support zones
- Candlestick patterns: Lower shadows (low below close) suggest buying support
- Stop loss placement: Often placed below recent swing lows
Interpreting the low relative to other prices:
- Low near close: Bearish; sellers maintained control into close
- Low far below close: Bullish reversal signal; buyers took control
- Low equals open: Buying pressure from the start (in rising day)
- Wide high-low range: High volatility; significant price movement
Key low price levels:
- All-time low: Lowest price ever traded
- 52-week low: Lowest price in past year
- Recent swing low: Local trough in price action
Trading considerations:
- Support bounces: Buying near previous lows with stop below
- Breakdown signals: Breaking below support indicates potential further decline
- High-volume lows: May indicate capitulation or accumulation
The low price defines the lower boundary of price action for a period. Combined with the high, it defines the trading range and helps identify support levels, risk parameters, and potential reversal points.