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Technical analysis

Resistance

By Jarosław Wasiński • Published: • Updated:
A price region identified from prior reactions or a stated rule as a candidate for selling interest or resistance to an advance. It is neither a barrier nor observed global order inventory. Crossing criteria, tolerance and timing must be defined; role reversal into support is possible, not guaranteed.
Example. Three previously confirmed EUR/USD highs lie within 1.1048–1.1052 under a stated tolerance. A rule marks that candidate resistance zone before the next event. If a later close is 1.1054, a close-above-zone condition is met; it does not establish that the price must continue rising.

A reference, not a barrier

Resistance identifies a region from past reactions or a specified construction. It can express a hypothesis of selling interest, but candles do not reveal all remaining orders. A line and a zone are different models: the latter explicitly adds price tolerance. Neither is a promise that another approach will stop at the same place.

Break and role reversal

Specify whether a break requires a wick, a Bid/Ask observation or a completed close. Broken resistance becoming support is a candidate polarity pattern, not an inevitable event. A retest may never occur or may fail. Waiting for one changes entry timing and missed opportunities rather than automatically improving safety.

Planning and evaluation

A resistance reference can inform a target, rejection condition or breakout rule. Position size, invalidation and costs remain separate. Price can rise through the zone, pause or decline. Count all qualifying tests under the original definition; do not quietly redraw the zone after an inconvenient outcome. More historical contacts do not by themselves demonstrate a statistically reliable trading edge.

FAQ

Does resistance always stop a rally?
No. It is a candidate reference, not a price barrier.
Does broken resistance always become support?
No. Role reversal is a hypothesis to evaluate under explicit criteria.

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Jarosław Wasiński

Editor-in-chief, ForexMechanics.com • Macro & FX analyst

Independent analyst and practitioner with over 20 years of experience in financial markets. Actively involved in Forex since 2007, with a focus on fundamental analysis, OTC market structure, and disciplined capital risk management.

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