CompanyGraph
Records the lowest transaction price of the session, exposing the trough of willingness to sell during the period.
Low price is the lowest traded price during the period. It shows the downside extreme of the session.
Low price is the lowest traded price during the period. It shows the downside extreme of the session.
Why low price matters:
- Range definition: Together with high, defines the trading range
- Support identification: Lows can become future support levels
- Momentum analysis: Higher lows indicate bullish momentum
- Risk assessment: Helps set stop-loss levels
Technical analysis applications:
- Swing lows: Local troughs used to identify trend direction
- Breakdown levels: Breaking below prior lows signals weakness
- Candlestick patterns: Low relative to open/close indicates selling pressure
- ATR calculation: Average True Range uses high-low relationships
Interpreting the low:
- Low near close: Bearish; sellers in control at session end
- Low far from close: Buyers pushed price up from lows
- New 52-week low: Weak momentum; may signal distress
- Higher lows: Bullish sign; buyers stepping in at higher prices
The low price is one component of OHLC data. Understanding where price found support during a session provides insight into market dynamics and potential future support levels.