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.

Market Structureresistance levelresistance zone

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.

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