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Formula: PRIORVALUE - allow usage in Custom Formula Field

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I am trying to create a text field where it will automatically update
it's value based upon the "highest escalation level a case ever

To solve the above, I attempted to create a TEXT Formula based Field,
but I then find out that PRIORVALUE can only be used in Validation Rules.

IF(ISPICKVAL(STATUS,"Escalated to Engineering"),"Eng",(PRIORVALUE (STATUS))

This formula is probably what I needed, but currently SF doesn't support usage of PRIORVALUE to create a custom text field....

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