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Glossary

Resistance

A price area above the current price where rallies have stalled and turned lower before.

Resistance is a zone where selling has repeatedly outweighed buying, stopping advances. It is usually drawn from earlier swing highs, and it is better thought of as an area than a single exact price.

On Chartora’s chart desk, the nearest resistance is the lowest swing high above the latest close, where a swing high is a daily close higher than the four closes on each side.

When price closes clearly above resistance, the old level often acts as support on a later pullback. Breaks that quickly fall back below the level are called false breakouts.

Read the full guideSupport and resistance: drawing levels that hold up

For education only, not financial advice. Crypto assets and stocks are volatile, and leveraged positions can lose more than the money you put in.