Definition
Resistance is a chart-based reference, not a guaranteed ceiling. Prior highs, repeated rejections, or supply concentration can help define a zone. Different timeframes may produce different relevant resistance areas for the same asset.
How It Works
For example, hypothetical rallies that repeatedly fail near 120 USDT may make that area noteworthy. If buyers absorb the available supply, price can break higher. A later pullback that holds the former resistance can be interpreted as a support retest, but this outcome is not assured.
Key Considerations
A visible sell wall can be canceled and may not reflect lasting supply. Breakouts can also fail, returning below the zone. Specify the price source, timeframe, and confirmation rule before evaluating a setup; drawing a line after the fact can make uncertain patterns look more reliable than they were.