52W Bottom
Cycle & extremes
The price sets a new lowest level of the past year.
Construction & calculation
- Take the closing prices of the last 252 trading days.
- If today's closing price is lower than or equal to all previous prices in that window, there is a 52-week low.
52W Low: C(today) <= min(C over the previous 251 bars)
Interpretation
- The contrarian reading — which this scanner uses — sees a yearly low as a potential buying opportunity: pessimism is maximal and much bad news is already in the price.
- The trend-following reading, however, warns: a stock at a yearly low is in a downtrend, and 'cheap' can always get cheaper.
- The scanner marks this green (bull) as a potential reversal opportunity.
How the signal works in this scanner
Buy signal (green)The closing price is equal to or lower than the lowest closing price of the past 252 bars.
Watch-outs & pitfalls
- This is the riskiest signal in the list. Catching a falling knife costs money. Wait for confirmation of a reversal (for example a MACD cross, an RSI divergence or a Supertrend flip) before entering.
- Always check why a stock is at a yearly low. Structural problems are not solved by a technical indicator.