Resistance
A price level where selling pressure has historically halted or reversed an upward move.
Resistance is a price zone where supply has repeatedly overwhelmed demand, capping rallies. It mirrors support in structure and logic — what was once support often becomes resistance after a breakdown.
A clean resistance level has:
- Multiple prior highs clustered in a tight range.
- High volume rejections — long upper wicks on candles.
- Confluence with another tool (VWAP, Fibonacci, moving average).
Resistance is an area of expectation, not a guarantee. Price can grind through weak resistance on expanding volume.
Example
AAPL stalls at $195 three times over six weeks, each time printing a long upper wick. Short sellers mark $195 as resistance and look for a confirmed rejection — a bearish engulfing candle — before fading rallies to that zone.
Related Terms
Breakout
Price moving decisively above a key resistance level or the top of a range, often on expanding volume.
BeginnerChannel
Two parallel trendlines containing price action — an upper resistance line and a lower support line defining the trend's corridor.
BeginnerConfluence
The overlap of two or more independent technical signals at the same price level, strengthening the case for a trade.
IntermediateDistribution
A period where large holders are quietly selling into strength — a potential precursor to a downtrend.
AdvancedPivot Point
A calculated average of the prior period's high, low, and close used as a benchmark level for the current session.
IntermediatePrice Action
The study of raw price movement — candlestick patterns, swings, and structure — without relying on lagging indicators.
BeginnerRange
A sideways price structure bounded by identifiable support and resistance where neither buyers nor sellers dominate.
BeginnerReversal
A sustained change in the direction of the prevailing trend, not just a temporary counter-move.
IntermediateSupport
A price level where buying pressure has historically halted or reversed a downward move.
BeginnerSwing High
A candle or bar whose high is higher than both the preceding and the following candle's highs — a local price peak.
BeginnerVolume Profile
A histogram of traded volume at each price level over a period, revealing where the market has done the most and least business.
Advanced