(Updated October 2021)
DEFINITION of ATH or All time high
ATH is short for All time high. It is an abbreviation of All Time High. This means that the price of a certain cryptocurrency or coin has broken all of its past records. And now it is trading at the highest price it has ever achieved.
WHAT IT IS IN ESSENCE
The all-time high is the highest price any given asset has ever reached on the open market. An asset reaching a new ATH can provide both opportunities and pitfalls for traders. If the asset is reaching a new All time high on a regular basis, traders can recognize the upward trend, and invest accordingly.
However, strong technical and fundamental analysis is also necessary. In order to determine when the asset price will hit its resistance and begin to drop again. Also, for a stock which price has closed highest ever. Technically it is a very bullish signal when a stock crosses its previous all-time high price and makes a new high.
And what does it mean in cryptocurrency? You heard people saying a coin is ATH. In cryptocurrency and stock markets ATH means the same. This is the most common term used in stock markets and cryptocurrency markets. When someone says the coin is going to touch ATH that means that coins going to be All-Time High.
Interestingly, it also means Armored Trooper Heavy.
HOW TO USE
A ”All time high” should not, in and of itself be used to develop a trading strategy. But it can and should be one of several tools taken into account.
All-time highs in stocks are a phenomenon when the price of the stock touches a new 52-week high. The financial media, tend to create a type of hype for such stocks. Stocks that are trading at all-time highs evoke an amount of curiosity, enthusiasm, and awe.
Should you buy near the highs? Or should you be short selling the rally?
According to the statistics, the average one-year positive return is 74% for stocks that break the all-time high. Only 26% of the stocks have a negative return following an all-time high.
The statistical data might be inconclusive, but a lot depends on the market context. The main question is, what makes a stock to continue pushing higher from an all-time high.
Conversely, when a stock is nearing the 52-week high, bad news would initially push price lower. But initially, traders are not willing to sell.
There are many factors that attribute to the behavior of stocks near the all-time highs.