Price Location
Resistance
A price level where selling pressure prevents further advance
Resistance is a price level where supply overwhelms demand, preventing price from rising further. It acts as a "ceiling" that caps price. Bearish patterns at resistance have higher probability.
✓How to Recognize
- •Price has rejected this level before
- •Sellers appear consistently at this price
- •Lower highs forming near the level
- •Increased selling volume at the level
⚡How to Avoid
- →Don't buy at strong resistance
- →Look for bearish patterns at resistance
- →Wait for resistance break confirmation before buying
- →Resistance becomes support when broken