Resistance in stocks-the secret to winning trades
Resistance in stocks-the secret to winning trades
In the stock market, resistance refers to a price level where a stock's price has difficulty rising above. It's essentially a ceiling, where there seems to be a strong selling pressure that prevents the price from going any higher.
Strength of Resistance
Identifying Resistance: Technical analysts use charts to identify resistance levels. These are typically horizontal lines drawn across the chart where the price has repeatedly been rejected in the past. Other tools like trendlines and moving averages can also be used to spot resistance zones.
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