Trading After 52-week Highs and Lows
September 15, 2008 - Technical Trading
Do 52-week highs and lows trigger unusual trading and returns for individual stocks? In their recent paper entitled “Volume and Price Patterns Around a Stock’s 52-Week Highs and Lows: Theory and Evidence”, Steven Huddart, Mark Lang and Michelle Yetman examine the evidence that past price extremes influence trading decisions, with focus on 52-week highs and lows. Using weekly volume and closing prices for a random sample of 2,000 stocks listed for at least a year during November 1982 through December 2006 (24 years), they conclude that: Keep Reading