A price level where sellers have historically stepped in to stop the rally and turn price back down.
Resistance is the opposite of support: a price level where supply has historically overwhelmed demand. It shows up as a horizontal ceiling on the chart where price has bounced down multiple times.
Like support, resistance is a zone, not a line. And the more times it's tested, the more stops build up above it — meaning when it eventually breaks, the move can be fast and violent as those stops trigger.
Broken resistance often becomes new support through role reversal. When price breaks above, everyone who sold at resistance is now losing money; when price retests the level, they buy to get out at break-even, creating a new floor.
USD/JPY 152.00 was a generational resistance tested in 1990 and not broken until 2024. When it finally broke, price rallied 800 pips in 2 months on yen weakness.
Frequently asked about resistance
What is a resistance in trading?+
A price level where sellers have historically stepped in to stop the rally and turn price back down.
When will I see resistance used in real trading?+
On every chart, usually at previous highs, round numbers, or prior swing tops.
What is the most common mistake traders make with resistance?+
Shorting blindly into resistance without confirmation. Resistance can hold OR break. Waiting for a rejection candle (pin bar, bearish engulfing) before entering is far safer than front-running.
What do experienced traders know about resistance that beginners don't?+
The strongest resistance levels are confluences: where horizontal resistance, a trend line, AND a moving average all line up. Solo resistance gets broken much more often.
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