Resistance
Resistance is a financial term used to describe the price level at which a security or asset is unlikely to move beyond. It is a concept used in technical analysis to identify potential areas of support or resistance for a security or asset. Resistance is the opposite of support, which is the price level at which a security or asset is unlikely to move below. Resistance and support levels are used by traders to identify potential entry and exit points for a security or asset.
History of Resistance
The concept of resistance has been around since the early days of technical analysis. It was first introduced by Charles Dow, the founder of Dow Theory, in the late 19th century. Dow Theory states that the market has three trends: primary, secondary, and minor. According to Dow Theory, resistance is the price level at which the primary trend is likely to reverse. Since then, the concept of resistance has been used by traders to identify potential areas of support or resistance for a security or asset.
Comparison Table
| Term | Definition |
|---|---|
| Resistance | Price level at which a security or asset is unlikely to move beyond. |
| Support | Price level at which a security or asset is unlikely to move below. |
Summary
In summary, resistance is a financial term used to describe the price level at which a security or asset is unlikely to move beyond. It is a concept used in technical analysis to identify potential areas of support or resistance for a security or asset. For more information on resistance, traders can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Support
- Trend
- Technical Analysis
- Price Action
- Chart Patterns
- Moving Averages
- Indicators
- Volume
- Momentum
- Volatility
