@Treehouse Official #Treehouse and $TREE If support is the floor, then resistance is the ceiling. This is the price zone where markets tend to stop rising because selling pressure increases. Traders watch resistance carefully to spot potential sell opportunities or to manage exits from profitable positions. A resistance level tested multiple times without breaking becomes stronger, as more sellers pile in at that point. But just like support, resistance isn’t permanent—if buyers gain enough momentum to break through, that resistance often turns into a new support. This shift is known as a breakout, and it can signal the beginning of a powerful trend. For successful trading, it’s not enough to simply know where resistance lies; you need to pair it with confirmation signals like candlestick patterns, momentum indicators, or trading volume.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content.See T&Cs.