Resistance
A price area where selling has repeatedly been strong enough to stop an advance.
Also called: resistance level · ceiling · supply
In plain language
Resistance is the mirror of support: a zone where supply has consistently overwhelmed demand and capped the move.
It often forms where trapped buyers wait. People who bought a previous high and sat through a decline frequently sell as soon as they get back to break-even, creating fresh supply.
Once resistance is broken and price holds above it, the level tends to flip and act as support on a retest.
Seen on a chart
Why it matters
Resistance is where a long trade’s upside realistically runs out, which makes it a far better basis for a take profit than a round number.
Common mistakes
- Setting a target just beyond heavy resistance instead of just before it.
- Reading every touch as equally significant regardless of volume or context.
Keep exploring
These concepts are connected. Understanding one usually makes the next one easier.
A price area where buying has repeatedly been strong enough to stop a decline.
When price moves decisively beyond an established support or resistance level.
A predefined price where a winning trade is closed automatically.
A market bounded between a clear high and low, with no directional trend.
When price returns to a broken level to confirm it now holds from the other side.