In plain English
What Resistance means
Resistance is usually treated as a zone rather than a precise number. It marks a level where supply has been strong enough in the past to stop price from rising further. If price breaks through resistance and holds, the level may stop acting as a ceiling.
Why it matters
Resistance helps traders identify where rallies have historically stalled and where upside may be limited. It is useful for chart analysis and trade planning, but it does not remove the risk of sudden continuation through the level.
Example
If a market repeatedly stalls near 1.2500 and fails to close above it, traders may call 1.2500 resistance. In a simplified example, a strong close above 1.2500 would suggest the barrier may have broken.
Quick answers
Common questions
Is resistance the opposite of support?+
Yes. Resistance is where advances tend to stall; support is where declines tend to stall.
Does a breakout above resistance always continue?+
No. A breakout can fail and reverse, which is why confirmation matters.
Sources