What is Resistance

In technical analysis, resistance levels represent price maximums that cannot be exceeded because of the availability of a great number of willing sellers. To overcome these price peaks, a substantial buying force is required.

 

Technical analysts study historical price trends and use previous price highs to draw resistance lines. Resistance lines are usually horizontal, but they could also be slanted. They are used, in combination with other indicators and data, to estimate the direction of future price trends and make trading decisions.

Resistance

Resistance levels represent historical price maximums.

Related terms

Relative Strength Index (RSI) Roadmap Return on Investment (ROI) Ransomware

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