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Resistance

A price level that acts as an overhead barrier to further price gains. Prices will frequently rally to these levels and then retreat. Resistance (like support) is rarely a specific price; it is more often a relatively contained price range, frequently in the vicinity of past technical patterns. One of the basic precepts of support and resistance is that once a support level is violated it becomes a likely new resistance level and when a resistance level is penetrated it becomes a new support level.

Articles related to Resistance

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Gary Kaltbaum contends that we're seeing stocks in pullback mode, and that's a good thing! Find out why. (more)
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Finding the right trade entries are key elements to any trading strategy. Tradingmarkets contributor Joseph Hopkins details the importance of using trend channels to find trade entries. (more)
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2 Ways to Find Reversals Off Support and Resistance
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What are some good tools for finding support and resistance levels? TradingMarkets contributor Jesse Richards looks at Gann Fans and Fibonacci retracements, as well as, how to implement and combine these powerful tools to find key support and resistance levels. (more)
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A 3-Bar Strategy for Trading Support and Resistance
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TradingMarkets contributing writer Robert Hoffman focuses on a 3-bar trading strategy to help traders avoid the false break out syndrome that so many have encounter throughout their careers. (more)
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