What is Day High and Day Low? How to Use Intraday Range
Day high is the highest price a stock reaches during a single trading session. Day low is the lowest price it touches that same day. Together, they define the intraday range, which tells you how much the stock moved between its extreme points during the day.
Say TCS opens at Rs.3,800 in the morning, rises to Rs.3,860 by noon, drops to Rs.3,770 in the afternoon, and closes at Rs.3,830. The day high is Rs.3,860 and the day low is Rs.3,770. The intraday range is Rs.90. That range tells you how volatile the stock was during that particular session.
Why do traders care about day high and day low?
The intraday range gives traders a sense of volatility. A stock with a Rs.200 range on a day when similar stocks move Rs.50 is showing unusual activity, possibly driven by a news event, earnings announcement, or large institutional order. Monitoring the range helps traders decide whether the day's movement is normal or exceptional.
Many intraday traders also use the day high and day low as reference levels. If a stock breaks above its morning high in the afternoon, some traders view this as bullish momentum. If it breaks below its morning low, they view it as bearish. These are observations about common patterns, not guaranteed outcomes.
How is intraday range used in trading?
| Concept | How Traders Use It |
|---|---|
| Narrow range day | Low volatility, often followed by a larger move the next day |
| Wide range day | High volatility, indicates strong conviction from buyers or sellers |
| Range breakout | Price moving beyond the day's established high or low signals momentum |
| Range-bound trading | Price bouncing between day high and low without breaking either |
Where can I check day high and day low?
Every broker platform and the NSE and BSE websites show day high, day low, open, close, and volume for each stock. These are standard data points available in real time during trading hours. Most platforms also show the previous day's high and low for comparison.
Track real-time price data including intraday range at stockk.trade/products/equity.
Investments in securities market are subject to market risks. This article is for educational purposes only.
Frequently Asked Questions
If a stock is trading near its day high late in the session, does that mean it will close near the high?
Not necessarily. Stocks can reverse direction in the last hour of trading. A stock near its day high at 2 PM can pull back and close near its day low if selling pressure picks up. The last 30 minutes of trading, from 3:00 to 3:30 PM, often see significant activity that can change where the stock closes relative to its intraday range.
What is the Average True Range and how is it related to day high and day low?
Average True Range, or ATR, is a technical indicator that calculates the average intraday range over a specified period, typically 14 days. It considers not just the day high minus day low but also includes gaps from the previous close. ATR gives traders a sense of how much a stock normally moves in a day, helping them set realistic profit targets and stop losses based on the stock's actual behaviour.
Is a stock with a very narrow intraday range a bad investment?
Not at all. A narrow range simply means the stock did not move much on that particular day. Stable large-cap stocks often have narrow ranges on routine days. A narrow range can actually indicate consolidation, where the stock is building energy before a larger move. Whether that move is up or down depends on other factors.
Can the day high or day low be the same as the open or close price?
Yes. If a stock opens at its highest point and spends the rest of the day below, the open price becomes the day high. If it opens at its lowest and rises all day, the open is the day low. Similarly, if the stock reaches its highest or lowest point at exactly 3:30 PM, the close price becomes the day high or day low.
How does day high and day low differ from circuit limits?
Day high and day low are actual prices where trades happened. Circuit limits are maximum permitted price bands set by the exchange. A stock with a 10% upper circuit from a previous close of Rs.100 cannot trade above Rs.110, but its actual day high might be Rs.108 if buying demand was not strong enough to push it to the circuit limit.
Investments in securities market are subject to market risks. This article is for educational purposes only and does not constitute investment advice.
Indira Securities Pvt. Ltd. | SEBI Reg. No.: INZ000031633 (Stock Broker) | IN-DP-431-2019 (DP) | NSE | BSE | MCX | Indira Commodities Pvt. Ltd. - MCX: 46025 | NSE: 50001 | SEBI Reg. No.: INZ000038238 | #153/154, 4th Cross, Dollars Colony, J.P Nagar 4th Phase, Bengaluru - 560078 | [email protected] | [email protected]
