All-time high (ATH) is a term that indicates the highest price of an asset ever recorded on an exchange or market.
Understanding the Term
An asset reaching a new ATH can be used as one of the tools to develop a trading strategy. For instance, if the asset is reaching a new ATH on a regular basis, traders can recognize the upward trend and invest accordingly.
ATH is the opposite of the all-time low (ATL), which reciprocally represents the lowest price at which an asset has ever been traded.
An all-time high should not be used as the sole indicator of when to make investment decisions. Rising ATHs must be paid attention to so as to notice when said asset price will hit its resistance and begin to drop again.