Resistance is the uppermost price level of an asset over a period of time.
 | | Term of the Day | Words to Know | | |  | | Resistance (Resistance Level) | Resistance, or a resistance level, is the price at which the the price of an asset meets pressure on its way up by the emergence of a growing number of sellers who wish to sell at that price. Resistance levels can be short-lived if new information comes to light that changes the overall market's attitude toward the asset, or they can be long-lasting. In terms of technical analysis, the simple resistance level can be charted by drawing a line along the highest highs for the time period being considered. Resistance can be contrasted with support.
Depending on price action, this line can be flat or slanted. There are, however, more advanced ways to identify resistance incorporating bands, trendlines and moving averages. | | Read More » | | Related to "Resistance (Resistance Level)" | | | | Trendline | | A trendline is a charting tool used to illustrate the prevailing direction of price. Trendlines are created by connecting highs or lows to represent support and resistance. | | Read More » | | | Moving Average | | A moving average is a technical analysis indicator that helps smooth out price action by filtering out the "noise" from random price fluctuations. | | Read More » | | | Price Action | | Price action is the movement of a security's price over time, which forms the basis for a securities price chart and makes technical analysis possible. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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