Low

Stock trading dictionary: meaning, example and how traders use it.

Last updated: October 17, 2026

Definition: The low is the lowest price at which a security traded during a given period, such as one session, a week, or 52 weeks; along with the open, high, and close, it is one of the four standard OHLC values shown on price charts.

How the low is measured

The daily low is the lowest price of any trade executed during the session. Most quote services report the low for regular market hours, 9:30 a.m. to 4:00 p.m. Eastern, and some show extended-hours prices separately. Weekly, monthly, and 52-week lows apply the same idea to longer periods. A single unusually low print, such as an erroneous trade later canceled by the exchange, may be removed from official data.

On a bar chart the low is the bottom of the vertical bar. On candlestick charts it is the tip of the lower wick, or the bottom of the body if there is no wick.

Why the low matters

  • Range: the distance from the low to the high shows how much price moved during the period and is a basic measure of volatility.
  • Buying pressure: a long lower wick with a close near the high shows buyers absorbed selling and pushed price back up.
  • Reference levels: prior lows often act as a support level, a price area where buyers previously stepped in.
  • Risk control: many traders place stop-loss orders just below a recent low, since a break beneath it suggests the setup has failed.

Example of using the low

Suppose a stock has bounced three times from about $30.00 over two months. Today it opens at $31.20, drops to a low of $29.85, and then rallies to close at $31.50. The brief dip below $30 followed by a strong recovery forms a long lower wick, which some traders read as rejection of lower prices.

A trader who buys at $31.50 might place a stop at $29.50, just under the day's low, risking $2.00 per share. If price later closes decisively below $29.85 on heavy volume, the support zone has likely broken and the low becomes a level to watch from below, where it may act as resistance.

52-week lows and new lows

A 52-week low marks the weakest price in a year. Some value-oriented investors screen for stocks near their lows to find potential bargains, while trend followers avoid them because weakness can persist. Neither approach is reliable on its own; a stock at a new low may reflect a deteriorating business rather than an opportunity, so many investors combine price data with fundamental research.

Breadth reports count stocks making new 52-week highs and new lows across an exchange. A growing number of new lows during a bear market signals broad selling pressure, while shrinking new lows during a decline can hint that selling is losing momentum. As with any single data point, a low describes what happened, not what will happen next.

Frequently asked questions

What is a stock's day low?

It is the lowest price at which the stock traded during the current or most recent regular trading session.

Is buying a stock at its 52-week low a good idea?

Not necessarily. A stock can keep falling, so many investors look for evidence of stabilization and examine the company's fundamentals before buying.

What is the difference between low and close?

The low is the lowest traded price during the session, while the close is the final price at the end of the session.

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For information only, not investment advice. See the disclaimer.