All-Time High (ATH) in ICT style refers to the highest price an asset or currency has achieved. This level represents the peak value of the asset.
All-time low (ATL) refers to the lowest price an asset or currency has reached in its history. This level indicates the minimum market value of the asset.
What is All-Time High (ATH)?
This term refers to the highest price ever experienced by an asset or currency.
#1 Market Excitement
Reaching a new ATH reflects high excitement and investor confidence, often accompanied by increased trading volume and activity.
#2 Market Psychology
The ATH level can act as a psychological resistance, leading investors to sell and potentially causing a price decline.
#3 Identifying Uptrends
Technical analysts use ATH levels to identify uptrends and forecast future price levels.
Example of All-Time High (ATH)
A weekly chart of gold against the US dollar (XAU/USD) shows the price reaching its historical peak (ATH).
What is All-Time Low (ATL)?
This term refers to the lowest price ever experienced by an asset or currency.
#1 Reflecting the Minimum Value
The ATL represents an asset's lowest market value, often observed during its initial launch or periods of severe market pessimism.
#2 Opportunities for Buyers
ATLs provide opportunities to purchase assets at a low price, especially if an increase in value is anticipated.
#3 Significant Support Level
The ATL often serves as a strong support level, with prices rarely falling below it.
Example of All-Time Low (ATL)
A weekly chart of the ARB/USDT cryptocurrency demonstrates that the price has reached its historical low (ATL).
Conclusion
Both ATH and ATL indicate the highest and lowest price levels of assets:
- All-Time High (ATH): This represents the peak value of an asset and acts as a resistance level, reflecting market excitement.
- All-Time Low (ATL): Marks the minimum value of an asset and provides opportunities for low-cost purchases.
