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What is Definition of Resistance in Trading?

Complete Cryptocurrency Trading Course

The resistance area is the area where we expect from price to stop rising and start with downward momentum.

The resistance is tested underneath and to be considered as resistance; it has to be above the current price.

Here is an example of the resistance area:

After we marked the first and second high, we had just a tentative resistance area.

After that, we extended that area to remind us once that area gets reached again because we may see some increase in interest. 



Once the area is reached, you should look closely at a price.

At the moment you do not know what signs you will look for, but we want you to know that when the price is approaching potential resistance, it is not an immediate sign to open a trade.

You need to wait for confirmation that the resistance is actually in play before opening a trade.

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