Crypto Terms: Letter R

What is Resistance (Line/Level)?

Resistance (Line/Level) MEANING:
Resistance (Line/Level) - is used to determine the maximum price point of an asset throughout a specific time period.
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Let's find out Resistance (Line/Level) meaning, definition in crypto, what is Resistance (Line/Level), and all other detailed facts.

Resistance (Line/Level) helps to establish the highest price point throughout a certain period of time. It indicates price zones where the possibility of selling is the highest. This phenomenon can be seen when the price of an asset increases to the resistance level thus causing an overwhelming amount of sales.

The resistance level serves as a signal for trading as it shows the asset’s breakout or trend reversal. Additionally, it has the potential to identify the most ideal entry and exit points for trading. Another indicator of plotting the resistance level is moving averages.

Moreover, the resistance level is not fixed. Therefore, the changes in the asset’s price determine the resistance level.

Evaluating and establishing a resistance level can be done by drawing the line on the daily price chart of an asset. Once that’s done, connect the peak points. Then you’ll be able to see each time the resistance level was reached thus establishing the trend reversal.

The more times the asset’s price has reached the same price zone, the stronger the resistance level is.