Zone Of Resistance

Categories: Charts

Zones of resistance are used in the stock market where an investor sets up “price zones.” Here, a stock might face some “resistance,” meaning the stock price begins to go down.

It is thought that the “denser” the zone is (how far the price can move up or down) depends on the volume of trading. If the trading volume is high, the point at which resistance occurs will be lower. It is also possible for the resistance zone to be wiped out altogether.

As the aliens always seem to opine in sci-fi films, "Resistance. Is. Futile."

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