What is High Price?

✅ What is High Price?

High Price is the highest price at which a stock is traded during a trading day in the stock market.
For example, if a stock rises up to 72,600 KRW during the trading session, that price is recorded as the High Price.
This indicates that investors highly valued that stock at that moment.

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✅ How is the High Price Formed?

1️⃣ It is formed based on buying pressure during the trading session.

• When the stock market opens, investors continuously buy and sell shares, causing prices to fluctuate.
• The strongest buying pressure of the day determines the highest price at which a trade is executed, marking it as the High Price.

2️⃣ It is displayed on charts.

• On a candlestick chart, the High Price is represented by the upper shadow (wick) of the candle.
• If the price goes up during the day and then falls back down, it shows that selling pressure was strong at that level.
• Conversely, if the High Price is sustained until the closing price, it indicates strong buying momentum.

3️⃣ It’s not just the highest price of one day.

• The High Price also includes important records like 52-week high, 20-day high, and 60-day high.
• Especially, if a stock breaks its 52-week high, it attracts more investor interest, signaling potential for further gains.

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✅ Example

Let's assume that Samsung Electronics had the following stock price movements on January 10:

• Opening Price: 71,500 KRW
• High Price: 72,600 KRW
• Low Price: 71,200 KRW
• Closing Price: 71,700 KRW

In this scenario, Samsung started trading at 71,500 KRW, surged up to 72,600 KRW at one point, and dropped back to 71,200 KRW.
The trading day ended at 71,700 KRW, but 72,600 KRW remained the highest point of the day, which is recorded as the High Price.

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✅ Why is the High Price Important?

1️⃣ Key Indicator for Volatility Analysis

• The High Price shows how much a stock fluctuated during the day.
• The larger the gap between the High Price and Low Price, the higher the volatility.
• Higher volatility generally implies greater investment risk, so investors should be cautious.

2️⃣ Acts as a Resistance Level

• When a stock reaches its High Price, it often encounters selling pressure, marking that price as a resistance level.
• If the price fails to break this level repeatedly, it becomes a strong resistance point.
• However, if it successfully breaks through, it may signal the path for further growth.

3️⃣ Establishing Trading Strategies

• Short-term traders often look to take profits near the High Price.
• Long-term investors monitor if the High Price is breached for potential additional buying opportunities.
• When a stock hits a 52-week high, it may indicate strong momentum and further upside potential.

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✅ Quick Summary

CategoryDescription

Meaning	The highest trading price during the day
Formation	Created by strong buying pressure
Chart Display	Represented by the upper wick on a candlestick chart
Use Cases	Volatility analysis, resistance level, trading strategy

 

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In conclusion, the High Price reflects the highest valuation of a stock by the market on that day.
Analyzing the movement of the High Price allows investors to understand price trends and develop more effective trading strategies. 😊