Are you tired of asking questions to your friends or in stocks trading forum about basic lingo?
Learn what NHOD and many other terms mean in stocks trading so that you can feel more
confident to interact to fellow traders in Discord room.
Plus, I will give you my easy free NHOD options trading strategy.
Table of Contents
NHOD Meaning in Stock Trading
NHOD in stocks trading stands for New High of the day.
This denotes the most recent highest price a stock has reached.
It is very important for stocks and options traders because it can trigger bullish trades.
NHOD is a signal that a stock price can go if it finds new high level.
The easiest way to find out if the current price is NHOD is by comparing the current price to the precious HOD (High of the day).
- If current price is greater than previous HOD, then it is NHOD
- Otherwise, it is not NHOD
NHOD vs HOD Definitions
It is important to remember that a stock can reach several (infinite) New Highs of the Day (NHOD).
Whereas, for each given trading day, there is only one High of Day (HOD).
Often, traders seem to confuse HOD for NHOD.
On the above chart of QQQ stock, I highlighted NHOD on the 15′ chart.
The first NHOD occurs on the 11:15am candle at a price of 281.73.
This is because the previous High of the Day took place on the opening candle at a price of 281.50.
Then there was another NHOD two candle later when QQQ price managed to go above the previous HOD of 281.73.
How to find NHOD Stocks
The opposite of NHOD is New Low of the Day (NLOD).
This happens when a stock is bearish and is posting lower lows.
In such instance, each new low will be NLOD.
For both NLOD and NHOD stocks, a bearish scanners and bullish scanner will help find such stocks.
To find NHOD stocks, my recommendation is to use this easy scanner setup from Finviz.
Here is a stock video how you will setup your filter to get the NHOD stocks you can trade,
NHOD Stocks are stock that you can trade confidently because they are showing strength to trade at the highest price of the day at that time.
However, you ought to be mindful that a stock cannot go up forever.
If NHOD happens to coincide with resistance level, it is well possible that a stock might be rejected and NHOD.
Consequently, from options traders, NHOD are very key levels because they will trigger a high probability either for calls (if the stock is to continue higher) or for Puts in case the New High of the day happens to be resistance.
People Also Ask FAQs
What does 0DTE mean in trading?
O DTE (Read zero – D-t-e) is an option trading terminology.
It means that there is 0 Day to Expiration.
Since most Expiration are on Friday, 0DTE on a Friday simply means a Day Trade because you will have to close that option position on that same day.
What does EOD mean in stocks?
EOD in stocks trading means End of the Day.
The Trading Day closes at 4pm EST non withstanding the after-hours.
What is the 52-week range in stocks?
The 52-week range goes from the 52-week low on one end to the 52-week high on the other extremity.
The 52-week low represents the lowest price of a stock over the previous 52-week (or one year).
Conversely, the 52-week high is the highest price the stock has reached over the course of the previous 52 weeks.
Therefore, in order for a trader to see the 52-week range of a given stock, the trader need to open a chart that is at least 52 weeks wide.
This can be done on TradingView using the daily chart or the weekly and even the month chart.
What is the difference between GTC and Day Order?
In stock trading, GTC stands for Good Until Cancelled.
This means that as a trader, I want this order to remain open until I decide to cancel it.
Such order will remain open until the trader who initiated the order decide to cancel it or the order is filled.
I often use this when I want to build long term position at a cheap price.
An alternative to GTC is a day order which remains open until the end of the trading day.
If such order is not filled, then your broker will alert you that your order has expired at the end of the day.
Check out this easy Tutorial on how to place orders on ETRADE:
Should you buy stocks at 52-week High?
Buying a stock at its 52-week high may not be the best decision unless such stocks has a great deal of catalysts.
I can recall NVDA stock in 2016 when it reached $100 for the first time as a good example.
Other recent instances like Roku or NFLX ended up as very bad entries at 52-week high.
My recommendation before you invest in a stock at its 52-week high is to do your DD (Due Diligence).
Should you buy Stocks at 52-week Low?
At least one advantage of buying a stock at 52-week low is that you are getting a discount.
However, a 52-week low does not mean that the stock cannot continue to fall.
Recent example for PTON has shown that new 52-week Low came in often.
This stock has gone from $120 to less than $10 between July 2021 and June 2022!
My favorite Strategy to trade 52-week High or Low
Trading 52-week low or 52-week high can be very rewarding with the following strategy.
Buy a strangle when the stock is at 52-week low with a 2:1 bias on the calls
Buy a strangle when the stock is at 52-week high with a 2:1 bias on the Puts
Add more contracts to the winning side as needed
Are GTC Orders executed after hours?
A God till cancelled order is valid during the regular hours of trading only.
Therefore, such orders will not get executed after hours.
This is in part because after hours trading does not provide that much liquidity for most stocks.
How do you analyze Stocks for beginners?
Whether you are a fundamental or technical trader, you can use Finviz and Tradingview to perform stocks analysis.
If you are able to implement a discipline approach to investing, you will be able to grow your net worth faster than the average person.
FINAL THOUGHTS ON NHOD MEANING IN STOCKS
We provided you the definition of NHOD is stocks trading.
Also, you were able to learn about other stocks and options trading lingo such as HOD, NLOD just to name a few.
Hold a Master Degree in Electrical engineering from Texas A&M University.
African born – French Raised and US matured who speak 5 languages.
Active Stock Options Trader and Coach since 2014.
Most Swing Trade weekly Options and Specialize in 10-Baggers !
YouTube Channel: https://www.youtube.com/c/SuccessfulTradings
Other Website: https://237answersblog.com/