Resistance
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Resistance is a price area where selling pressure has previously been strong enough to stop a rise. When price returns there, sellers often reappear, so the advance stalls or reverses. Like support, resistance is a zone rather than a precise line, and repeated tests attract attention from traders on both sides until the level either holds firmly or gives way.
Full explanation
Resistance builds at prior swing highs, the upper edge of ranges, psychological round numbers and well-watched moving averages. A clean break with strong momentum and follow-through suggests genuine acceptance above the level; a sharp rejection wick suggests sellers remain in control. Broken resistance often turns into support on a pullback, which is one of the most reliable continuation setups.
Why traders watch it
Knowing where resistance sits stops you buying into a ceiling and helps you set realistic targets rather than hoping for an uninterrupted run.
Related indicators
Asian session
The overnight session driven by Tokyo, Sydney, Hong Kong and Singapore, typically quieter and range-bound.
Clear direction
When one side is plainly in control: price makes progress one way and pullbacks are shallow.
Consolidation
A pause in which price moves tightly sideways, often after a strong move, while the market absorbs it.
First spike
The sharp, immediate move in the seconds after a release or a level breaks — usually the least reliable part of the whole move.
High-impact news
A scheduled release with a strong record of moving markets sharply — for example inflation, employment data or an interest-rate decision.
Holding a move
When price stays at its new level after a move instead of drifting back — the sign that the move was accepted.