Resistance

Definition:
A historically significant price level that price action has had a difficult time trading above.

Background:
If price action rises and approaches a confirmed resistance level, a "re-test" of Resistance occurs and it can be either confirmed again or broken.

A test at Resistance is confirmed if a bearish change in market sentiment occurs at the resistance level.

Resistance is broken when the bullish market sentiment does not change at the resistance level and price action continues up through the resistance level.

Practical Use:
Traders often use Resistance levels as potential areas to "sell short" into or regions to simply avoid buying into. This can be very helpful in the "timing" of entering or exiting trades.

Get 6 (downloadable) _trading tutorials emailed to you right now--FREE.

Chart Example

About

About Us
How it works
Blog
Media

Support

Suggestions, Ideas & Feedback
Help
Contacts
FAQ's
Terms of Use
Privacy Policy

Social Media

Twitter
Facebook
StockTwits

U.S. Government Required Disclaimer - Stocks, ETFs, mutual funds, commodities, bonds, futures, options and any securities trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the securities markets. Do not risk capital you cannot afford to completely lose. This website is neither a solicitation nor an offer to Buy/Sell and security. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

google-site-verification: google2e9b0792bde1bd1c.html