Forex trading involves risk. Losses can exceed deposits

Resistance level definition

Forex trading involves risk. Losses can exceed deposits

A resistance level is a key tool in technical analysis, indicating when an asset has reached a price level that market participants are unwilling to surpass.

Resistance levels are often used in conjunction with support levels, or the point at which traders are unwilling to let an asset’s price drop much lower. Traders will often identify areas of support and resistance in order to make decisions on trades, including when to place stop-losses and take-profits.

If an asset does break through its resistance level, then some traders believe it will carry on rising in price, or ‘rally’, until a new resistance level is found.

Contact us

New Accounts

1 844 IG USA FX

newaccounts.us@ig.com

Trading Services

1 312 981 0498

helpdesk.us@ig.com