Resistance

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    ResistanceWhat 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.

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    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.

    Resistance

    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:

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