1 min read

Resistance is a price point where an asset is expected to have significant supply. This indicates that it is less likely for the price to go above this level. Resistance can be assessed by looking at an order book. Price levels with a large quantity of pending sell orders would be deemed resistance levels.

Additionally, resistance can be determined by historical price moves. Resistance can be a constant price, or it can be a trendline that is increasing or decreasing over time. Resistance is a common decision variable for active traders.