Resistance Level Definition - Glossary

Resistance Level is a price point where an asset struggles to rise above due to selling pressure.

Resistance Level is a price point in technical analysis where an asset encounters selling pressure, preventing it from rising further. It occurs when a growing number of sellers enter the market at a specific price, often due to previous highs or psychological barriers. Traders use resistance levels to predict price movements and make informed decisions. If an asset breaks through a resistance level, it may signify bullish momentum, potentially leading to a new resistance level. Understanding resistance levels aids in identifying potential entry and exit points in trading strategies.