What it means
Resistance describes an area on a chart where price has previously found selling interest, slower buying, or a change in behaviour. It is usually found above the current market price.
Why it matters in live markets
Resistance matters because it helps traders identify areas where the market has reacted before. It can provide chart context, but it does not guarantee that price will fall from the same area again.
Key points
- Resistance is usually above the current market price.
- It shows where price has previously slowed, paused, or reacted.
- Resistance is often better viewed as a zone rather than a perfect line.
- Resistance can hold, break, or become unclear in volatile markets.
- Resistance is a chart-reading concept, not a trading signal.
Example
If a market rises toward the same area several times and repeatedly slows or reacts there, traders may describe that area as resistance.
Related glossary terms
Support, Support and resistance, Breakout, Retest, Market structure
Where you will see it
You will usually see resistance discussed in chart education, market-structure guides, platform tutorials, and beginner trading mechanics articles.