A resistance level is a concept in technical analysis, indicating when an asset has reached a price level that market participants are unwilling to continue buying, which causes the price to stop rising.
Resistance is a price level at which upward movement may be restrained by accumulated supply at or around that price level.
More and more sellers will be active the closer the price gets to the resistance level.
Traders will often identify areas of support and resistance in order to make decisions on trades, including when to place stop losses and profit targets.
If an asset does break through its resistance level, then some traders believe it will carry on rising in price, or “rally“, until a new resistance level is found.
If you liked this article, then please subscribe to our Newsletter Services for Forex Related updates. You can also find us on Facebook and can subscribe to our YouTube channel. You can also join our Telegram Channel for real-time trading analysis and discussion. Here is our service sitemap. If you have any confusion please leave your comments below.