Resistance Level

A trading resistance or resistance level reflects a given price that acts as a temporary ceiling for an asset. In its most basic form, this level pressures an asset’s price from rising above it, either acting as an outright barrier or exerting pressure in doing so.This pressure is due to a growing number of sellers who wish to sell at the particular price at a defined resistance level. Resistance levels can either be temporary constructs, longer-lasting ones, or purely psychological. As a result, several factors can control resistance levels or cause these to change over time. In terms of technical analysis, a simple resistance level can be calculated by drawing a line along the highest highs for the time period being considered. Resistance differs notably from support levels, which operate inversely. Understanding the Basics of Resistance LevelsResistance levels do not have to only be flat lines, but can also represent slanted pricing levels relative to trend lines. There are both simplistic and advanced ways to calculate resistance levels and doing so forms the foundation of technical analysis. Any asset trader can map out their strategies or place stop-loss orders in line with resistance levels. A resistance level equates to the price at which enough traders intend to sell the particular asset, thereby outnumbering the buyers in terms of volume.As soon as price reaches this potential resistance, the number of sellers increase, preventing price from increasing further. Resistance presents itself across all timeframes, generally speaking, the higher the timeframe, the stronger these levels manage to hold.
A trading resistance or resistance level reflects a given price that acts as a temporary ceiling for an asset. In its most basic form, this level pressures an asset’s price from rising above it, either acting as an outright barrier or exerting pressure in doing so.This pressure is due to a growing number of sellers who wish to sell at the particular price at a defined resistance level. Resistance levels can either be temporary constructs, longer-lasting ones, or purely psychological. As a result, several factors can control resistance levels or cause these to change over time. In terms of technical analysis, a simple resistance level can be calculated by drawing a line along the highest highs for the time period being considered. Resistance differs notably from support levels, which operate inversely. Understanding the Basics of Resistance LevelsResistance levels do not have to only be flat lines, but can also represent slanted pricing levels relative to trend lines. There are both simplistic and advanced ways to calculate resistance levels and doing so forms the foundation of technical analysis. Any asset trader can map out their strategies or place stop-loss orders in line with resistance levels. A resistance level equates to the price at which enough traders intend to sell the particular asset, thereby outnumbering the buyers in terms of volume.As soon as price reaches this potential resistance, the number of sellers increase, preventing price from increasing further. Resistance presents itself across all timeframes, generally speaking, the higher the timeframe, the stronger these levels manage to hold.

A trading resistance or resistance level reflects a given price that acts as a temporary ceiling for an asset.

In its most basic form, this level pressures an asset’s price from rising above it, either acting as an outright barrier or exerting pressure in doing so.

This pressure is due to a growing number of sellers who wish to sell at the particular price at a defined resistance level.

Resistance levels can either be temporary constructs, longer-lasting ones, or purely psychological.

As a result, several factors can control resistance levels or cause these to change over time.

In terms of technical analysis, a simple resistance level can be calculated by drawing a line along the highest highs for the time period being considered.

Resistance differs notably from support levels, which operate inversely.

Understanding the Basics of Resistance Levels

Resistance levels do not have to only be flat lines, but can also represent slanted pricing levels relative to trend lines.

There are both simplistic and advanced ways to calculate resistance levels and doing so forms the foundation of technical analysis.

Any asset trader can map out their strategies or place stop-loss orders in line with resistance levels.

A resistance level equates to the price at which enough traders intend to sell the particular asset, thereby outnumbering the buyers in terms of volume.

As soon as price reaches this potential resistance, the number of sellers increase, preventing price from increasing further.

Resistance presents itself across all timeframes, generally speaking, the higher the timeframe, the stronger these levels manage to hold.

Technical Analysis

GBPUSD has defined the risk levels. What levels should you look at and why?

GBPUSD

GBPUSD has defined the risk levels. What levels should you look at and why?

  • The central bank noise has given the market the opportunity to define the range
Greg Michalowski
Greg Michalowski
Wednesday, 28/09/2022 | 14:41 GMT-0
28/09/2022 | 14:41 GMT-0
Technical Analysis

AUDUSD retest the low from yesterday

AUDUSD

AUDUSD retest the low from yesterday

  • Low at 0.64377 being tested.
Greg Michalowski
Greg Michalowski
Tuesday, 27/09/2022 | 16:16 GMT-0
27/09/2022 | 16:16 GMT-0
Technical Analysis

EURUSD digs more into key swing area resistance

EURUSD

EURUSD digs more into key swing area resistance

  • Swing area between 1.03395 and 1.03657
Greg Michalowski
Greg Michalowski
Wednesday, 10/08/2022 | 14:54 GMT-0
10/08/2022 | 14:54 GMT-0
Technical Analysis

USDCAD tests May highs. Finds sellers on the first test.

USDCAD

USDCAD tests May highs. Finds sellers on the first test.

  • Price is above the 200 week MA at 1.30312
Greg Michalowski
Greg Michalowski
Friday, 17/06/2022 | 15:24 GMT-0
17/06/2022 | 15:24 GMT-0
Technical Analysis

GBPUSD tests the May low at 1.21543

GBPUSD

GBPUSD tests the May low at 1.21543

  • The low price today reached 1.2160 so far
Greg Michalowski
Greg Michalowski
Monday, 13/06/2022 | 14:17 GMT-0
13/06/2022 | 14:17 GMT-0
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}