Resistance

    By
    Andrey Orlov
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    0

    What are “resistance” levels in trading?

    A resistance level is a price at which sellers enter the market in such sufficient quantities that it halts the price movement. When observing this on a price chart, it will appear as a horizontal line where the price seems to reverse to the downside.

    Together with support, resistance levels form one of the most elementary concepts in chart analysis.

    At tradimo, resistance levels are usually visible as green lines in illustrations and screenshots. The chart below shows an example where the price reaches the same level multiple times and a resistance line is established.

     

    Please note that besides the horizontal resistance, trend lines and channels can also have the same effect: defining price points where sellers are likely to enter the market.

    Learn more about using resistance levels:

    Support and resistance: an introduction