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Resistance

The term “Resistance” pertains to the level of an asset price to breakthrough because of strong selling pressure. In a number of instances, the occurrence of resistance levels may be connected to huge sell walls. These serve as a deterrent for prices to rise higher.

What this means is that a Resistance level is seen as a ceiling resulting from a large supply of sellers within that price range. Given this consideration, traders may be able to suppose Resistance as a level that may only be exceeded by a relevant purchasing pressure.

It should be noted that a resistance level, once exceeded, becomes its opposite: a Support Level.

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