Resistance is a zone where many sellers are willing to sell, making it harder for price to move higher. As price approaches this level, upward momentum often slows.
It’s a psychological area. Investors who bought earlier may want to lock in gains, while others hesitate to buy at what feels expensive.
Resistance helps explain why prices pause or reverse even during strong trends. It marks areas where supply temporarily outweighs demand.
Understanding resistance improves timing and risk management. It helps investors avoid chasing prices into crowded zones driven by short-term market sentiment.
Resistance is commonly identified by:
- Previous price highs where rallies stalled
- Repeated failures to break above a level
- Rising selling volume near the same price zone
- Momentum indicators weakening near resistance
Levels are zones, not exact prices.
A common mistake is treating resistance as an unbreakable ceiling. Strong trends can push through resistance decisively.
Another error is ignoring context. Resistance levels matter less during high-momentum phases or major news-driven moves.
On Stoxcraft, resistance appears on stock pages within the technical analysis section.
It’s also referenced in Academy content explaining support, trend, and how price levels influence trading behavior and market psychology.