In this study, we propose a historical high strategy based on the market overreaction effect. Li and Yu (2012) suggest that investors tend to overreact to bad news as stock prices are far away from the historical high and find that the ratio of current price to historical high negatively predicts future returns for the Dow index. We extend their study and examine the return predictive power of the historical high prices at stock level. We observe that the historical high strategy by buying stocks with prices far away from the historical high and selling the stocks with prices close to the historical high can obtain significant positive returns. Subsample analysis suggests that the profit of the historical high strategy is much higher among the stocks with smaller firm size, lower liquidity, and lower share turnover. Subperiod analysis shows that such strategy achieves significant higher returns under low sentiment and quarter-beginning subperiods. (152 words)