Technicals Stability Returns

Related Tutorial On Technical Analysis
Market Cycle Steps To Start Trading Technical Analysis Stock Analysis
Support and Resistance Futures Options Price and Volume
Highs and Lows Trends

Learn Resistance Level & how it is used in Technical Analysis

Support Basics Resistance By EMA Resistance By Bollinger Resistance By Trendline

What is Resistance Level?

Resistance level is the price from where stocks, slow down, stop moving upwards and they bounce back. Here bears sentiments are stronger which push the price Downtrend Basics.
Resistance is the level where investors believe that price will go down and they start selling the stock results in decrease in price.

Breakout:The markets sentiments keep on changing may results in a breakout due to various reason. It can be fundamental or other market event, etc. While resistance gives a sell signal to the trades, a breakout gives that bulls are stronger compared to the bears results in further increase in price.

Therefore it is important to look at the other technical parameters like Volume, MACD, Relative Strength Indicator (RSI), Candlestick Basics etc., when trading near Resistance.

If the resistance is broken and the price rises above it, it will serve as a support in the future.

What decides the strength of Resistance?
A number of factors a trader may want to look around to see the strength and to confirm it. They are :

1.Length: The longer the duration resistance the more reliable it is. Longer duration shows more points, a price is hitting the resistance line showing the positive sentiments.

2.Height: The broader the distance between the Support and Resistance the more powerful it is.

3.Volume: Higher volumes add strength to the resistance. Higher volumes indicates more traders have the same sentiment at a particular time frame.

Now we have understood what Resistance is. Now its time to understand Support. Please follow these links to find more about Support/Resistance and how it works. We have explained them in details and provided you with ample real life examples of them.

Support Basics Resistance By EMA Resistance By Bollinger Resistance By Trendline

Support/Resistance Stock Screener of Indian Stocks can be found at:
Related Technical Stock Screener
Resistance By EMA Resistance By SMA Resistance By Bollinger Resistance By Trendline
Resistance By Weekly Trendline Resistance By Monthly Trendline